Job costing software is designed to help with the process of job costing – predicting the amount of money that particular jobs are going to require in order to complete – in terms of many power, in terms of supplies and more. At the same time by scheduling these jobs the software can also help you to organize your tasks to prioritize effectively and to work to a set timetable.
Every job that you or your business performs will cost you money. This will be obvious costs such as supplies and employee salaries, as well as some of the less obvious overheads such as the amount of money going into property rental, the amount of money lost if it has slowed your other agendas, and things like transport.
All of this means that sometimes it can cost you a lot more to perform a job that you at first predicted. It might be that what at first seemed to be a very profitable task, wold in fact be much less so and only leave you with a small profit margin.
By using job costing it is possible to visualize the precise costs of various jobs, processes and tasks and this allows you to make plans around that. It may for instance help you to prioritize your tasks by knowing which ones you are going to need more finances for and which will take longer. At the same time it can allow you to decide which jobs you want to take on and which you do not. If you have two jobs that seem to offer equal pay, but the costs of one of them is higher, then this can inform you on which to prioritize.
Meanwhile if you are charging your client for your costs as might be the case for a building contractor, then you will need to be able to add up the costs of your jobs in order to give them an accurate bill and an accurate estimate. This will greatly affect their customer satisfaction – at first because it might mean that your predictions were inaccurate which can cause them to be annoyed at losing money, but also because it might mean that upon closer inspection they find that you overcharged them. Of course if you undercharge them conversely they will be very satisfied customers, but you will lost profits due to poor maths.
Using scheduling you can also see which of your jobs needs completing when and work to a realistic time scale. By combining job costing, scheduling and an analysis of your daily costs, it is possible to carry out very accurate financial modelling that allows you to make highly accurate predictions regarding your profits based on your upcoming jobs and the profit you'll make from each.
Finally, the value of job costing software is not only in the fact that it allows you to more accurately plan ahead and manage your costs, but also that it allows you to do so more quickly and easily meaning that you engage fewer man hours with something that can be automated by software.
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One of the first steps to improve your level of time and attendance profitability is to use some accurate job costing software.
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