Have you ever wondered how successful construction companies accurately price custom projects? The secret is in a method called Job Costing. For small business owners like you, understanding this process could be the key to increasing your profitability and ensuring that every job is priced right. 

 

Welcome to a world where every material, labor, and overhead cost is meticulously tracked to unveil the actual cost of doing business. Let's explore Job Costing, how it works, and how you can leverage it to enhance profitability.

 

Understanding Job Costing

 

Job Costing is a way to assign costs to specific jobs or projects. Unlike methods that evenly spread costs, this approach focuses on the details—tracking materials, labor, and overhead for each job. This makes it especially useful for businesses handling custom projects, particularly construction services like remodeling or home building.

 

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Topics: Contractors Job Costing Library, Job Costing Reports, Job Costing, Job Costs, Pricing Jobs

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The First Question You May Ask Yourself Is

Why Doesn’t My Tax Accountant Help Me With Job Costing?

They are Tax Accountants, not Construction Accountants and may not know the answers. You may think they are just keeping it a secret. Sometimes you may think they don’t know what they are doing, and maybe I need to get a new tax accountant.  

My Advice is Stop, take a deep breath. Is your tax accountant doing a good job with your annual taxes? If the answer is YES. Please keep them, they are doing what they are supposed to do.

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Topics: Job Costing Reports, Annual Tax Return, Tax Accountants, Taxes

Job Status Report - Lists information for each active customer and job

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Topics: Reports, Job Costing Reports, QuickBooks Job Status Report

Expenses Not Assigned to Jobs - Report lists costs that have not been assigned to a customer or job, totaled by vendor. This report helps you find costs that may not have been passed along to your customers.

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Topics: Reports, Job Costing Reports, Expenses Not Assigned to Jobs

Unpaid Job Bills By Vendor - Report shows all bills you have not yet paid, sorted by vendor or subcontractor, and lists customer or jobs associated with each line item on the bill.

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Topics: Reports, Job Costing Reports, Unpaid Job Bills By Vendor

Unpaid Bills by Job - Report lists the bills you have not yet paid, separated by customers and jobs. It lists only bills with a customer or job associated with it. This report is useful if you wait to pay vendor bills for a specific job until you receive a payment from the customer; Pay-as-Paid.

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Topics: Unpaid Bills Report, Reports, Job Costing Reports

Unpaid Bills by Job - Report lists the bills you have not yet paid, separated by customers and jobs. It lists only bills with a customer or job associated with it. This report is useful if you wait to pay vendor bills for a specific job until you receive a payment from the customer; Pay-as-Paid.

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Topics: Unpaid Bills By Job Report, Reports, Job Costing Reports

Job Costs Detail - Report lists all the costs you have for each job. This report is useful if you need to separate all material supplier purchases, subcontractor's bills, and labor costs for each job.

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Topics: Reports, Job Costing Reports, Job Costs Detail Report

Job Costs Job By Vendor Detail - Report shows a detailed list of the job-related costs you have incurred for each vendor, subtotaled by job.

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Topics: Job Costs Job and Vendor Detail Report, Reports, Job Costing Reports

Job Costs by Vendor and Job Summary - Report lists the job costs you have incurred for each job or project and it is subtotaled by vendor.

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Topics: QuickBooks Job Costs By Vendor And Job Summary, Reports, Job Costing Reports