Project accounting is one of the most important financial tracking methods for construction companies. Often referred to as job costing, it is the process of tracking all of your costs and revenues towards a project or job. This is often the key reason why business owners have low or no profitability. Because not tracking all…
At the end of every year business owners all over America look at their profit and loss and see how their businesses performed. At first they only look at three numbers – gross revenue, gross profit and net profit. After that they dig into the meat and potatoes of how those numbers were calculated. The…
Many contractors tell us they use a variable markup or margin to price their jobs. There is a widespread belief that using a variable pricing methodology works best. The mindset is that sometimes you have to adjust your price to get the job. It might be a widespread belief, but too often we’ve seen contractors…
When most people think of job costing they think of construction businesses. But you can us job costing in any business that has multiple streams of income that are significant to that businesses bottom line. Job costing is all about assigning the proper costs to individual project or jobs, to help determine its profitability. In…
