Job Costing - Accounting System
If you are a contractor, jobber, builder, electrician, etc., you most commonly bid jobs on fixed contract, cost plus, time and material, etc. methods. Knowing and analyzing your direct costs and overhead allocations are vitally important in the bidding and billing processes. A proper accounting system can identify and capture costs by job and assist in applying reasonable overhead rates. Don't overlook the importance of knowing the numbers! Timely and accurate information is critical in making good business decisions. The costs of implementing a good accounting system would be recouped very quickly due to the accurate information available in bidding and in billing jobs.
When was the last time you had a consultation and assessment of your accounting processes? Now may be a good time to do so.