Last updated on December 22nd, 2020 at 09:49 am | This article was published at an earlier date and has been updated with new information.
Job Costing Software is a very high demanding accounting software that is suitable for all types of online business and offline business owners. Most companies or organization that have a management segment such as a project management department or the accounting term department uses this type of job costing software to enhances their business in an efficient way.
This article will be pointing out the most top 5 Five benefits of using a construction job costing software in your company (s) or organizations.
5 Benefits of Using a Construction Job Costing Software
In construction, job costing is the process of determining the cost of the entire project. It takes into account everything from the quantity of material needed to the cost of labor and provides you with an estimated cost. You do all this with respect to a certain project and approach it accordingly. In the job costing method, you are breaking the cost by day, not in bulk. Whether you should use job costing or not depends on the nature of your business. But when it comes to construction, it is a very helpful tool.
Breakdown of Job Costing Software
Job costing helps you determine the cost by dividing the project into the following cost centers:
You can begin by finding out how much it will cost you for the labor every day. Later you can multiply the amount and can get a good estimate. During this process, you also need to figure out whether you will need subcontractors or not, and they will be available or not. You should also have a contingency plan so that your job costing doesn’t get affected.
Now for this, you will need to calculate for both direct and indirect material. From wood and steel to fasteners, calculate the cost of all the materials and don’t forget to add the delivery charges and waste charges.
The third cost center you will be dealing with is overheads. There are plenty of expenses like office rent and depreciation of equipment, and for that, you will need to charge extra money. This step is more of an approximation stage as it doesn’t relate to the job directly.
Using a Construction Job Costing Software
Job costing has been around for a while but doing these calculations was never this easy. Today with the help of construction job costing software, you can do everything efficiently and without any inconvenience.
You don’t have to keep track of spreadsheets and plenty of other documents to do a job costing any more. With the help of job costing software, you can streamline all the processes and can do the calculations in seconds. A job costing software offers you:
Accurate Job Pricing
Once you have set a certain cost for each job, you will be able to estimate a much more accurate amount. Also, the software takes every calculation into accounts and adds things the right way.
No Customer Conflict
Another benefit of using construction job software is that it helps you avoid any conflicts with customers. The software helps you predict the final bill quite accurately. So, when you hand out the bill to the customer, it will still be close to the quote you gave them.
Switching to a job costing software will help you save plenty of time. As mentioned before, job costing is something that requires a lot of effort and time if done manually. But when you are using the software, you just have to punch in the numbers, and your calculations will appear in no time.
Better Profit Calculation
It will suck if you fail to get a good profit even after all the estimations. When you are doing job costing manually, you don’t have much time for projecting profits. However, with the software, you will always have a number of screens predicting your profit. You can stay competitive and make big profits at the same time. Before we mention the last point, we suggest you should also read the below articles:
Another great benefit of using construction job software is that it offers you real-time tracking. At any stage of the process, you can enter the spent cost and see whether you are spending the right amount or a little too much. This helps you update your clients timely.