5 Tips for Improving Your Job Costing
How confident are you in your job cost numbers? Tracking and controlling job costs is essential to running a profitable construction company. Unfortunately, many construction firm owners don't have a high degree of confidence in their job costing numbers. Here are 5 tips to help increase your confidence in your job cost numbers.
1. Track Committed Costs
Have you ever closed out a job then received a bill you’d completely forgotten about? Suddenly the profit you thought you’d made erodes before your eyes. Sage construction software helps you issue and track purchase orders and subcontracts to give you the clearest picture of every cost connected to a job.
2. Install a Change Order Process
Understanding how and why your budget has changed is critical to establishing your true job costs. Documenting and monitoring the status of change orders will help make sure you get paid for all your work.
3. Collect Time Sheet Data Daily
Labor is your biggest risk to losing money on your jobs. Capturing and reporting work time on a daily basis (rather than weekly) will improve time sheet accuracy. It will also give you a more current view of labor costs. We can help with integration to mobile time card reporting applications.
4. Use Alerts
Sage construction software lets you take proactive measures to monitor your costs. You can set up automatic alerts to notify you when jobs haven’t been billed, profit falls below a specified percent, as well as any another event that you want to be notified about.
5. Give Estimators Access to Actual Costs
Tracking actual costs against your budget and using that information to refine future bids will improve your company’s ability to win more profitable work.
Use these tips to get the most out of the job cost features of your Sage construction software. If you don't use Sage construction software and would like to learn more, feel free to contact us. You may also want to check out our free Software Selection Guide.