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Job Costing Increases Profits

Use job costing to dramatically increase profits

What is Job Costing? Job costing, also known by some as job order costing, is an accounting method used to track the costs associated with a specific job or project. This method is typically used in industries where goods or services are produced based on a specific customer order, and each order or job has …

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The Many Faces of Construction Job Costing

happy with job costing system

Income minus expenses equals gross profit. Your gross profit is the amount you use to run your company and create profits. Job-costing is how you can track the income and the costs you incur to perform each of your jobs. It’s how you get to see the gross profit you earn on each of your projects. Your perception of what you want to see from a job-costing system may be very different than another business owner’s concepts. Why? Because there is no single prescription that fits everyone’s needs.

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Purchase Orders Are Critical – Here’s Why…

Sample Purchase Order to clarify, document and save money

… My Canadian friend and colleague, Bryan Kaplan of Construction Consulting, recently sent an email about an experience with Purchase Orders that was so insightful I asked if I could share it with you. This quick read will provide you with a handful of Quick Wins! The Saturday Text… It was 11 pm on a …

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Top 7 Reasons Business Owners Call a QuickBooks ProAdvisor

Assistance from a QuickBooks Prodvisor

Based on 20+ years of incoming requests for assistance from business owners, here are the top 7 reasons I’ve found that they call me as a QuickBooks ProAdvisor. See if any of these scenarios sound like what you may be facing in your company… As a business owner, you learn through trial and error what makes …

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How to Squeeze More Profits Out of Every Construction Job

How to squeeze more profits out of every job

A version of this article first appeared in the Builder Partnerships newsletter. It just seems logical… …that every business owner would want to know exactly what each type of job costs (so they know how to price it). Right? And they’d want to monitor what’s going right and what’s not (financially) as the job progresses …

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How to Use QuickBooks Job Cost Features to Achieve Your Gross Profit Goals

Job Costing In QuickBooks QuickBooks is designed to help you to plan, measure, and monitor company and job results. You can even use QuickBooks Job – Cost Features to Achieve Your Gross Profit Goals! Use its management reporting tools to immediately SEE operating and financial results. Proactively correct problems – before they spin out of …

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Labor Profit Tip #5: The Secret to Making Better Hiring Decisions

Labor Burden Information Tip #5: Make Better Hiring Decisions by Thoroughly Understanding Potential Additional Costs Bad hiring decisions can have a devastating effect on your bottom line, so you want as much objective data at your fingertips as possible before you hire. You can use labor burden calculation information as a starting point when it’s …

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A Tale of 4 Companies: A Job Cost & Gross Profit Drama (Part V)

Investigate unusual numbers to track down problems

If you haven’t already read them, you’ll probably want to visit Part I, Part II, Part III, and Part IV of this “Tale of 4 Companies: A Job Cost & Gross Profit Drama” before beginning the following “Part V.” We’re joining Paul (owner of Paul’s Perfect Projects LLC), Walt (Production Supervisor at Paul’s), Jenn (Estimator …

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A Tale of 4 Companies: A Job Cost & Gross Profit Drama (Part III)

job-cost and gross profit percentage

How Bookkeeping Supports Job-Cost & Gross Profit Measurement at Paul’s Perfect Projects, LLC If you haven’t already read them, you’ll probably want to visit Part I and Part II of this “Tale of 4 Companies: A Job-Cost & Gross Profit Drama” before starting the following “Part III.” In Part III, Paul & Dave have just …

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Tale of 4 Companies: A Gross Profit & Job Cost Drama (Part II)

Paul (of Paul’s Perfect Projects, LLC) tackles the gross profit problem by showing Dave his Estimate vs. Actual variance reports. (If you haven’t already read it, you’ll want to visit Part 1 of this “Tale of 4 Companies: A Job Cost & Gross Profit Drama” before jumping into the following “Part II”…) Paul’s Approach to …

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A Tale of 4 Companies: A Job Cost & Gross Profit Drama (Part I)

Can you really affect your gross profit by setting up a job costing system? Is it worth the time, energy, and effort involved to measure and track your numbers? Let’s visit with the owners of four (hypothetical) companies; then decide for yourself which owner’s shoes you’d prefer to step into… As background to the story …

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QuickBooks for Contractors – Using Items for Job Costing

This post about QuickBooks’ Items is excerpted from our more extensive training video that’s included in our Construction Accounting & Management Program (CAMP). QuickBooks Items – Automating Job Costing for Construction Companies QuickBooks Items enable construction companies to automatically track, and report on, the financial detail underlying what’s REALLY going on within the financial side …

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