Jenkins, Magnus, Volk, Carroll, P.C.

Certified Public Accountants

 

42714 Woodward Avenue  Bloomfield Hills, MI 48304

 

Phone: 248-858-2400

Fax:     248-858-7301 

 

Website: www.JMVCcpa.com

December 2021

Why Job Costing is Important

Why Job Costing is Important

Operating a profitable business means knowing how much it costs to complete a project. With prices going up, its especially important to review costs now.


TRACK ALL OF THE COSTS
Job costing is the process of totaling the cost of materials, labor and overhead used to complete a specific job. When summarizing all of your expenses in bulk, it’s hard to understand where you’re profitable and where you’re losing money.


BETTER BIDDING
You can use your historic job costing when creating bids or quotes for new jobs, saving you time. And when you review your past jobs, you can start to identify trends. For example, if you run a construction company, you may find that residential remodel jobs are more profitable than retail store buildouts. Now you can bid on jobs that bring you the best margins.


PAY OFF
With accurate job costing, you know how long it takes staff to complete a project so you can better manage employee scheduling. And job costing can reduce the likelihood of unexpected expenses that can lead to disputes with customers when deciding who must pay for them.


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