Job costing and contractor profitability
You're busy. Do you know which jobs are actually making money?
Revenue is not the same as profit. Job costing means recording every direct cost of a job (labor, materials, subs, equipment) against that job, in the same categories as the estimate, so you can compare estimate versus actual while the job is running. If you cannot confidently explain what labor, materials, overhead and change orders did to a job, start with the numbers and the process behind them.
Free. You do not need to know which service you want. If it is a fit, you get a fixed-scope proposal.
Does this sound familiar?
It may not be the problem you think it is.
Maybe QuickBooks Online is technically up to date but does not help you make a pricing or hiring decision. Maybe labor and material costs are not getting tied back to the job. We look at how the information gets recorded before deciding whether the books, the job-costing setup, pricing or a handoff needs attention.
- “We finish plenty of jobs, but I am not sure which kinds are worth taking.”
- “I know what we charged. I do not know what the job really cost us.”
- “The numbers come in after the decisions have already been made.”
- “My bookkeeper reconciles everything, but I still cannot see job profit.”
Why it matters
Before buying another tool or hiring around it, find the actual snag.
When job costs arrive late or land in the wrong place, an owner may be pricing, scheduling or choosing work without a useful view of labor, materials and overhead.
Before buying a dashboard or changing accounting software, it helps to see how estimates, time, purchases, change orders, closeout and bookkeeping connect. The numbers can only answer the questions the underlying process supports.
How I approach it
Three steps before any fix.
Understand the decision
Start with what you need to know: job margin, service-line profitability, cash needs, pricing or something else.
Trace the information
Look at how estimate details, labor, materials, expenses and job closeout move through the current tools and people.
Choose what to fix first
Decide whether the next useful step is bookkeeping structure, job-costing workflow, pricing analysis, reporting, or help from your CPA.
Ways to work together
Start with what the business needs.
Every path is a fixed-scope project: diagnose, design, implement, verify, stabilize. Not sure which fits? Start with the free 15-minute call.
Flagship for contractors
Job Cost Ready
Trust what each job actually cost. A fixed-scope project that connects estimating, accounting, labor, expenses and subs, verified on a real job before signoff.
See Job Cost ReadyInvoicing, progress billing, AR, AP and vendors
Get Paid Faster
Tighten invoicing and progress billing, pick the right AR and AP tools, and set up vendor and sub onboarding with W-9s, so money comes in on time and bills go out clean.
About get paid fasterQuickBooks, CRM, project and field tools
Systems Setup and Cleanup
Set up, clean up and connect QuickBooks Online, your CRM, project and field tools so the work moves without double entry or chasing.
About systems setupOperator Notes
Read more on this
Portfolio
Related sample projects
- Construction Operations System (Sanitized recreation)
- Billing Operations and Revenue Leakage Audit (Sanitized recreation)
- KPI Dashboard and Management Reporting (Sanitized recreation)
A few straight answers.
What is job costing?
Job costing is recording every direct cost of a job (labor, materials, subcontractors, equipment and other direct costs) against that job and in the same categories as the estimate, so you can compare estimate versus actual and see gross profit per job.
Do I need to know which reports I need?
No. Bring the question you are trying to answer. We can work backward to understand what information and workflow would make that decision clearer.
Can you help with QuickBooks Online and job costing?
Kelly can help organize financial information, examine job-costing workflows and build management reporting. Tax, audit, attestation and CPA-specific judgment belong with your CPA.
Will you just tell me to buy a new system?
Not before understanding what is happening. Sometimes a tool is missing. Sometimes the existing setup or the way people use it is the problem.
Bring me the problem
You run the business. I will set up the systems behind it.
Book the free 15-Minute Systems Fit Call. I learn what you need and how you want to solve it, tell you whether and how I can help, and if it is a fit you get a fixed-scope proposal.