Job costing, particularly in the construction industry, is as much an art as it is a science. It's a careful balance between making sure your firm and employees are paid fairly and having a shrewd eye for remaining competitive in the marketplace. If you aren't getting the project bids your company deserves, you may need to look at implementing best practices for job costing.
You want to account for all costs associated with a project, even if you are only giving the client a general estimate and not an itemized breakdown of the job costing process. The little costs add up quickly, and it's easy to end up with a project that is vastly over budget because you failed to consider these costs initially. You either eat the costs or end up with an unhappy client, and neither of these are ideal situations for long-term success. Keeping tabs on the actual project costs gives you an accurate financial base that will allow you to come up with a fair price for both you and your client.
More than 2.5 million construction firms in the United States, some big, some small, some successful, are struggling.
In bookkeeping, job costing is simply the task of tracking the expenses on a project and comparing them to the.