Critical to every small business is the ability to bid competitively to help maintain a solid profit
margin. Proper job costing provides businesses with the power to carefully track expenses and income, generate job specific financial reports, and improve estimates to boost the bottom line.
Job costing in QuickBooks may seem like a daunting task, but the benefits are essential to maintaining a successful small business. Job costing allows you to:
Track how much money you spent Proper job costing in QuickBooks allows you to keep close track of how much money you've spent on a job. Using QuickBooks allows you a comprehensive way of monitoring every receipt, invoice, and payment to ensure each job is coming in at cost.
View the amount made for each job In addition to tracking how much is spent; job costing in QuickBooks provides you with the bottom line profit for each job. At the end of a job you can view not only how much you spent, but also how much you made and how close your actual costs were to the initial estimate you provided.
Determine job quality The data and reports you can generate in QuickBooks will allow you to determine the types of jobs that are most profitable and beneficial for your
business. This will give you the information necessary to be selective when considering which jobs to take and which you should pass on.
Improve estimates Job costing in QuickBooks gives you the ability to compare your estimated costs to your actual costs once the job is complete. This comparison will tell whether you are providing accurate estimates or if you are bidding a job too high or too low. Paying close attention to job costing will improve your estimating ability.
At Salt Lake City Bookkeeping we are committed to helping small businesses with fewer than 50 employees with their bookkeeping needs. We understand that small businesses can live or die by accurate and careful job costing. What assistance does your business need with its job costing in QuickBooks?