Job costing is is the process of assigning the costs you incur to a specific job you or your business is involved with. It is vital to assign all your materials, labour and overheads incurred to the relevant projects to ensure profitability and sustainability.
At Senstone, we can run the job costing element of your projects and report back to you on agreed intervals. Having an accountant to track your projects is highly beneficial to make sure no materials or labour slips through the cracks. Some businesses also do not cover their overheads or immediately think of billing them to jobs.
An example would be a business that is highly labour intensive. We can calculate an overhead absorption rate that you can charge per labour hour to each job. This means that all non billable costs are all accounted for and recovered from each job.
Job Costing and QuickBooks
QuickBooks has a 'Projects' section built in. It is like a project centre where you can enter transactions against the project. You can assign the project to a customer or a sub-customer. You can track any unbilled time and expenses along with nonbillable time.
The following transactions can be linked to the project:
- Invoice Payment
- Purchase Order
Whether you invoice in part throughout the project or in full at the end of the project, we can run a project profitability report at any time along with reports for unbilled and nonbillable activity.
Having the job costing and your bookkeeping records all together in your QuickBooks cloud accounting software saves you time, money and also avoids calculation errors on excel spreadsheets and other manual methods of cost tracking.