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Job Cost
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Job cost calculation is a
complicated process and is best done through software meant specially for
the purpose. With a job cost software you can track expenses for any
number of construction projects. A good software offers you detailed
tracking for all types of job cost, with an actual-versus-estimated mode
of reporting so you can see at a glance the current status of each job and
compare current job costs with the original job cost estimate for the
whole project. As soon as you have your hands on any pricing confirmation document, start entering your job cost into the software. This facilitates billing for you, and you get to know your current expenses accurately. A specialized job cost software includes many features that you won’t get in normal accounting programs. For one thing, it posts your job cost immediately and does not wait until they are paid. It includes labor costs, taking into consideration different rates for separate types of work. It also includes several choices for tracking cost of equipment time and subcontractor bills. View job cost for overhead, real estate and equipment accounts. See reports of basic expenses – equipment hours, labor hours, material purchases, subcontractor costs, etc. In short, a job cost software lets you see exactly where you are making money and where you are losing. See the job cost breakdown by category. See a subcategory breakdown or a get a list of specific expenses in a particular category. This helps you arrive at a prediction of the final project cost. A job cost software specifically tracks job cost against a project estimate. It helps you to allocate every expense to a specific overhead account, and you know exactly what needs to be changed to earn more profit. A job cost software makes it easy to record the raw data for job cost -- there are separate entries for equipment hours, labor hours, material purchases, subcontractor costs, and inventory used. You can assign each expense to an account, to a cost category or subcategory, and to different job cost locations within the project. Equipment, labor and subcontractor expenses include a separate job cost amount, which takes into consideration payroll burden, markup, overhead and other expenses. In this way the job cost software shows the actual expenses, which may be different from the amount you've paid directly. The software enters each expense on its own to job cost. All you have to do is enter the data once, and the software automatically uses them for accounts payable, time and materials billing, material price updating and payroll. Job cost can also be allocated to allowances, bids, change orders, purchase orders and work orders. As soon as you allocate these costs, the software adjusts billing amounts, and makes sure that you never pay more or unnecessarily on your bids and purchase orders. You can use a job cost software for a handy report of expenses and income for each project. You’ll get a list of active projects with the current job cost information. The job cost report is a quick way to see overhead and project costs, so you can do a cost benefit analysis and take decisions about future projects. You even come to know which particular employees are the most productive. Job Cost |
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