job costing

Discussion in 'Business Operations' started by kris, Jan 23, 2002.

  1. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    I've been working on the tedious job of "job costing" this week ... going through work sheets etc. We have decided that next year all information will go to the secretary daily and she will input the info.

    I'm interested in any one else's routine ... do you do it all at the end of the year as I am? I understand that doing it as each job is complete has allot of benefits. One being that you may catch many problems as they arise.

    Lousy but important job.
  2. Rex Mann

    Rex Mann LawnSite Senior Member
    Posts: 621

    When we do a proposal we use an Excel spreadsheet. In it we put all our costs and estimated costs. Then we bid the job based on that information. If we do get the job, then we keep track of the actual vs. the estimated. All of that info goes into a job jacket. A file for that particular job.

    At the end of the year, which is now for us, I go over each one. I see how the actual copared to the budgeted numbers. From these I see if we had any areas which could be improved. Last year I found our material ordering was lax. (BTW: that's my department). I made an improved effort this year and it was much better. My point is: If I did not keep the records and use the information it generated I would not have known why we had delays on some jobs. The more timely your information is the more valuable it is.

  3. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    We do the same ... I was saying that I think it will be much better having the information input daily ... as soon as a job is complete I will have the numbers.
  4. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Posts: 1,277

    Well, you are both way ahead of me. I aspire to that. Right now, I have a year calendar on the wall, with work schedule. It's all in dry-erase marker, and when we complete a job I change the calendar to reflect the time (measured in crew half-days) it took to do the job.

    At year end I go through the projects, (try to) match up payroll, materials, etc.

    Mine is nowhere as exact as yours. I don't mind the process. I even like it a little, because I feel like I'm discovering little nooks and crannies where money is hiding.
  5. diginahole

    diginahole LawnSite Member
    Posts: 249

    Effective job costing should be reviewed on no less than a weekly basis. Using canned accounting packages like MYOB or QB makes this task nearly effortless. As purchases are entered you have the opportunity to charge that purchase to a specific job and a P/L report is printed off after each job is complete. This is important stuff in the construction sector. Doing job costing after the year is over IMO is way to late. If you are consistently over budjet in a particular area you will be better served to know this in May and remedy the situation now. JOB COSTING is easy, you are doing 99% of it already just to pay the bills. Pay attention to the numbers now.

    If you keep your eyes on the road, you can drive with the pedal to the metal!!!!!
  6. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    I agree diginahole and that's why things are going to change... I do believe it is still worth doing even though it's late.
  7. diginahole

    diginahole LawnSite Member
    Posts: 249

    That's great kris you'll be happy you did it. You will find that it takes very little effort. One thing I find helps out alot it to print the job number on the packing slips when picking up materials. You are right on last years data though, better late than never.
  8. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    Every job we do is assigned a PO # and reciepts are kept in this folder. Any other information is taken from the estimate material list and worksheets ... Our worksheets are very detailed with each task given a code , and what equipment was prep code 5 laying sod code 6 etc etc.Bobcat used for 6 hours ... 3ton 6 hours ... Foreman are required to keep track of time for each task ... may sound like alot of work but it's not.
    Another advantage of having the gal input this information daily is that it will force the foreman to keep very good paperwork because if not, it will be noticed quickly
  9. lawn and stump

    lawn and stump LawnSite Member
    Posts: 191

    I have been using Clip classic and job costing can be done for any time period and it takes 5 mins. Clip pro will sort your jobs in order of dollars per hr. so you could just print out your loser jobs.
  10. dan deutekom

    dan deutekom LawnSite Senior Member
    Posts: 424

    I agree with diginahole. You got to do jobcosting right away. I like to do each job soon as it is billed. That way you can correct problems right away and not blow a whole year. It dosn't matter what system you use as long as you use it all the time.

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