Looking for Advanced Job Costing Services? Money Mastery is Here for You!

A person in a suit is sitting at a desk full of papers. They are using a calculator while holding a pen in the same hand.

11/21/2024 By: Money Mastery

Are you in the construction, real estate development, or other related service industry? Do you want to maximize your profits on your jobs and projects? Money Mastery offers advanced job costing services that are designed to help you identify areas of your finances that need to be improved so that you can maximize the amount of dollars you earn per project or job.

For those of you who may not be familiar with the concept of job costing, let’s dig a little deeper.

What is Advanced Job Costing?

When accountants refer to job costing, they’re talking about a concept that is best suited for businesses who usually operate on a per project or per job basis. These types of businesses, such as home builders, create their products once they receive an order from a customer.

Money Mastery uses job costing techniques to track costs for clients through reporting and analysis in order to estimate the maximized profitability for each job. This data can also be used to help identify areas of improvement during the process, such as bidding and pricing, as well as provide a comparative analysis of what price was originally quoted to a customer versus what it actually cost to complete the project at hand.

What’s Accounted for in Job Costing?

Sure, maximized profits sound great to any business - but what exactly is accounted for in job costing efforts?

Costs of Labor

When it comes to job costing, one of the things that should be tracked is the cost of labor. In order to do this, every single bit of labor must be tracked in an organized manner for best results. One of the best ways to do this is with a timesheet that allows workers to account for every part of their day - from certain tasks for the overall project to travel time. While this may seem like overkill to some, you’ll be surprised at how much money you could possibly be wasting if you’re not paying attention to every single detail when it comes to the amount of labor being performed.

Costs of Materials

We understand how it can be on a job site - things can get pretty chaotic sometimes and well, things like tools and materials accidentally get misplaced, destroyed, or go missing. Just like tracking the costs of labor, job costing also tracks materials as well by using something called a materials request or materials requisition form. Basically, this form is used to keep track of inventory, the price of items, as well as which tools are being used on certain tasks.

Costs of Overhead

In addition to costs of labor and materials, job costing methods also take overhead into account. While you think you’d be covering most expenses with labor and materials, there are other things that may come into the picture that don’t really fall into either of those categories. For example, do you have to pay rent for your office or place of business? What if you need to rent a specific tool just for one project? There are many items that may be counted as overhead, but can be hard to keep up with. That’s why working with a professional like Money Mastery is ideal!