Job Cost Reporting: Why Reporting Matters
Many construction companies have a system for estimating the costs associated with a particular job or project. Understanding current and projected expenses will help you see whether or not the project is lining up with your budget.
However, getting an accurate glimpse of the expected budget can be difficult if you don’t organize and routinely track your expenses and revenue. Some do this manually using spreadsheets, which can become time-consuming and tedious.
Working with an experienced outsourced accounting firm will help you make real-time cost assessments, improving cash flow and giving you access to better cost reporting software.
What is a Job Cost Report?
A job cost report is a financial tool that provides a clear look at projected and accrued expenses for any given project. They estimate the job’s total costs, profitability, and performance needs. While these reports are helpful, some only add up the expenses once the job completes.
This is good when reviewing potential problems or delays to be avoided on future projects. Still, it would be much more beneficial to compare ongoing costs and be able to make adjustments —before you experience a cost overrun.
Invaluable Insights for Construction Companies
Accurate financial statements are necessary for maintaining your budget and managing your contract activities. With an accurate cost report, you’ll be able to compare payroll costs, employee benefits, equipment rentals, and hard costs.
By analyzing your ongoing project financials, you’ll also be able to address any fluctuations in cost and see if you are properly using your budgeted resources. Rather than relying on manual data entry, using financial software that automates and simplifies your project costing will save you hours of time, keeping you on schedule and on budget.
An effective job cost report should provide:
- Accurate reporting for reviewing the current status of a job. With a clear picture, you’ll be able to review how a project will finish from a financial perspective.
- Timely and continuous monitoring to identify potential problems earlier in the project timeline rather than later, allowing you to effectively reallocate resources.
- Performance insights to understand project efficiency and be able to quickly assess costs based on performance or a particular job sector.
- Cost profitability and accessibility for all incurred and expected future costs. With this visibility, you can develop a strategy to better control costs and make smarter decisions.
Job Cost Reporting Help
Inaccurate reporting and cost discrepancies put your potential profits at risk. Future profitability and better resource allocation begin by establishing a solid foundation for your job cost reports.
With a trusted accounting partner who understands your need for timely and accurate construction reports, you’ll simplify this process, experience better control over your actual costs, and positively affect your bottom line.
At Lescault and Walderman, we provide comprehensive accounting services with access to best-in-class financial software, so you can be more confident in your planning and resource management. Contact us to set up your free discovery call and get back to growing your business.