Job Costing – what exactly is this? Job costing is the process of tracking costs and revenue for individual projects. More specifically, it looks at the details of a project, breaks down the costs of labor, materials, and overhead. You most commonly see job costing in manufacturing industries or the construction industry where costs vary from job to job. Job costing can be a helpful tool for small business owners to get a deep dive of individual jobs and see if any expenses can be reduced in future projects.
For example, take Sally Jones. Within a small construction company, Sally wears a few different hats. She works for a company where she is paid an hourly rate. Job costing is important here because not only does the business have to look at Sally’s rate for her paycheck, but the price of the materials she is using needs to be calculated as well.
First off, the business needs to calculate how much it will cost them to employ Sally on a project. Next, the cost of materials being used needs to be calculated. For example, materials such as screws, lumber, and so forth. Next, overhead needs to be calculated. Overhead costs are things that factor into the job such as, administrative fees and rent for your office. Once these expenses are calculated you have your total job cost. Total job cost = direct materials + direct labor + applied overhead.
With all this being said, it can be easy to become a little overwhelmed with trying to keep up with and track costs for your business. Here is where Workforce PayHub can help! Diving into the micro level of project management is crucial to the success of a project and we are here to help make sure you succeed.
Our personalized team can help better manage your expenses and track job costs. We will go above and beyond to ensure you are satisfied, organized, and successfully managing expenses of your business. We have the tools you need to not only track various projects and tasks, but overall payroll services as well.
Workforce PayHub is passionate about serving the heart of America, the small business community. Our hub of cloud-based solutions and various customer representatives are a phone call away to help with tracking the minute and tedious details that come along with job costing. Easily stay on top of your project management services with Workforce PayHub and make sure your small business is doing everything it can do to work smarter and more efficiently.
Reach out to Workforce PayHub today and let us help make your lives easier.