With out a reliable Job Costing Software for easy tracking of costs against the projects undertaken and accurate allocation of every expense to the specific job or overhead account, your Business would in no time grind to a halt and eventually wind up. Since you would not easily know what to charge for your jobs and whether the Jobs you undertake are profitable or not.
That is why prudent Business people who appreciate this aspect of Contract Business and Job Costing Accounting don’t hesitate to spend fortunes on good Job Costing Software in an effort to enhance Business accountability through easy tracking and managing of costs of labour and materials used as well as any hired labour and up to the Customer billing stage.
Therefore, for every successful contractor in today’s business world, job costing software is an essential business reporting tool. But just why is Job Costing Software important for Construction and Contract Accounting?
I will give you two reasons why you should consider buying a Job Costing Software if you provide service to your clients such as Construction, transportation and installations.
1. A Job Costing Accounting Module will easily let you know what the profitability of a given job is at completion. This information will help you in quoting future jobs to avoid carrying out jobs at a loss.
2. Using software will give you total control over all the jobs with details of materials drawn to specific jobs and you can easily know which jobs are completed. Some jobs take longer to complete but a job costing software helps you allocate costs and measure profitability for both short term and long term jobs.
This is the general concept of Job Costing Software but the detailed functionalities and management reports will vary from one type to the other. Your choice should therefore depend on your accounting needs of your Construction business. Alternatively, simply consult an expert and define the area of your business the expert will then identify the accounting needs for you and advise on the right job accounting Software which suits your needs.
One such software I can recommend to you is Pastel Evolution Job costing. This is an add-on module and lets you easily Invoice jobs to your customers by first opening each job as a Job Card where you can link more items besides the materials. For example you can purchase an item directly for use in a job and allocate employee hours from your payroll module into the job.
If you found this post helpful or you need any clarification feel free to leave a comment.
