Do you struggle when it comes to monitoring project costs? Find out how to ensure accuracy within project job costing.
Do you have a good overview of all your project outgoings?
If you’re part of a project-based business, you will appreciate that efficient and consistent job costing is vital for driving profitability.
One of the main ways to be certain of your total job costings is to keep anaccurate record. This allows you to predict and monitor costs of certain jobs within your project and most importantly, ensures you can deliver the project in its entirety on time.
Efficient job costing is one of the main factors leading to successful project management.
Here are several ways that you can ensure accuracy when it comes to projectjob costing:
Use Job Costing Software
One of the things you should consider for improved accuracy is to invest in project job costing software.
Job costing software for business isessential if profitability is on your agenda, as you can manage direct and indirect costs thoroughly throughout your campaign.
Using it from the outset means you can easily manage your project’s health and profit, while you deliver other client tasks.
With such software, you can log all your project expenses, keeping you well on top of your outgoings.
Having a bird’s eye view of all your project expenses can give you a good idea of when it’s time to start tightening spending on certain sections of your project.
Its best quality however, is its accuracy, so you can worry less about overspending or losing track of costs.
Compare estimates to actual costs
Comparison of projected and actual costs is vital at the start but also throughout the project, as it may be that certain costs will go up mid-project that are unavoidable.
This could be due to buying supplies or additional time needing to be spent on a project. Sometimes clients will demand work that was not originally agreed upon, half way through a project and this too, needs to be monitored.
Job costing software can make this process easier, by automatically flagging any issues with overspending and updating you with how much of the estimated budget has been spent.
Human error can have a major impact on your project job costing, so it’s always pivotal to guarantee that you double check every data entry you make.
To help ensure reporting is as accurate as possible, it is best to keep all reporting in a central location, using tools such as Dropbox or project management software. This means that issues with data being entered from many spreadsheets or sources incorrectly is more easily avoided.
Plus, having data stored centrally, means files are easily and quickly accessed and keeping abreast of all the figures is easy. Employingjob costing software will enable you to see the value in your operation strategy.
It is a good idea to invest in some quality job costing software to give you full control over job costing so you can benefit from profitable, well-managed campaigns. It can also assist with faster invoicing, improved accuracyand ability to proactively manage risk.