Construction Job Costing – Avoid Consequences Of Blind Procedures
With the ready availability of effective job-costing tools, the implementation of thorough construction-based job-costing procedures need not be difficult. Yet many contractors continue to endure unnecessary financial risks. Perhaps they count detailed job costing a distraction to daily operational tasks. Maybe they just consider it an overly expensive endeavor practiced only by the "big" boys in the construction industry.
Yet acceptance of this misguided concept has caused many construction firms to fail.
With the right construction accounting software and a willing management team, job costing in construction can be simplified, practical, cost effective, and also serve as a reliable tool toward enhanced profits. Let’s look at some of the benefits associated with applied construction-specific workforce and asset allocation and planning software.
Automated and Categorized Cost Tracking
Mentally estimating where funds are spent can be quick, easy and far from precise. Construction-focused accounting software enables contractors with tools designed to automate categorization and tracking of job expenses in all areas, including:
- Labor allocation
- Materials disposition
- Equipment allocation
- Quality control resources
- Health and safety expenses
- Subcontract charges
- Overall project burden
- And More.
Budget-Focused Job Costing In Construction
Accurate project budgeting relies upon figures provided by the project estimator. Efficient construction job costing software offers contractors the option of breaking down large estimates into small task-focused estimates. By fine-tuning data collection, data analysis and cost predictions to a smaller scale of individual operations, real-time job costing occurs. In some fields, it is called "accrual accounting," wherein costs are adjusted as soon as expenses are incurred rather than after expenses are paid.
Automated Analysis of Field Reports
Effective and efficient workforce and asset allocation and planning software provides construction contractors with the power to dispatch workers to the right site at the right time. It also helps ensure that workers have reliable access to all relevant documents. But the construction job costing aspect takes matters a step further. With access to real-time task-specific feedback, contractors gain immediate access to:
- How much task-specific work has been completed
- How much of the task-specific budget is already in use
- AND establish a reliable estimate toward final overall task-related expense.
Comprehensive Evaluation Of All Components For Job Costing in Construction
Accurate and competent job costing software offers comprehensive evaluation of all components related to project job costing. This includes collected data that enables construction contractors to:
- Clearly project and confirm task-specific as well as overall company profitability
- Evaluate and compare past projects to projected projects
- Track and evaluate overhead expenses as well as task-oriented expenses
- Capture and rightly apply job costs that have previously remained hidden beneath the heaps of disordered and raveled paperwork
- Balance out the costs of technology, communications, certifications, insurance and the entire host of once “abstract” so-called job costing values.
Assignar For Speedy and Accurate Job Costing In Construction
Many construction contractors use Assignar for real-time compilation and comparison of actual in-process project expenses. Make adjustments before expanding costs get out of hand rather than after. Know in advance whether a change order is actually necessary. Accumulate accurate data for improved future job cost estimating. Assignar, a workforce and asset and allocation and planning software precision-crafted to help contractors reap higher overall profits.