Job costing brings together the costs of materials, labour, and any other expenses for a particular job.
Job cost accounting will track these various costs along with any revenue to determine the profitability of the said job.
Job cost software organizes the different costs within a job into categories for control purposes. This type of software can help determine profitability, report ongoing costs, and manage invoices and expenses. Job-cost software automates an accounting system that tracks the accumulation of costs and revenue for each job. Key areas of job costing include labor costs, materials, and overhead. Accurate budgeting and estimates depend on the accuracy of these figures.
Accurately predicting job costs in the trades can make or break your bottom line. The more construction companies and other service businesses know about the actual costs of providing a full scope of services, the more informed decisions they can make to increase company profit.