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5 Benefits of Using a Job Costing System
Always being aware of your business expenses is as important as generating cash flow into your company. Whether it’s trivial daily costs or essential financial responsibilities like ensuring all payments have been made on time, every expense affects your business and should be recorded digitally.
Understanding the inherent need for a business to be organised, Joblogic has created job costing software to deliver all necessary solutions. From a job invoicing tool for efficient client billing to calculating project expenses, Joblogic’s software accounts for all business expenses while automating the entire process.
With that in mind, let’s explore five benefits a job costing system can offer.
Tracking Your Expenses
Manually tracking expenses can be a tedious process often resulting in human error.
Costing software allows managers to categorise and record expenses for every project, such as labour, material and travelling costs. This ensures accountability for all spending, providing a clear overview of what it’s being spent on.
A job costing system also enables managers to know the total cost of a project and its net profit. Estimated and quote costs can be measured against actual costs, which are monitored in real-time. This allows managers to make valuable comparisons between various projects, identifying which jobs are most profitable.
The procedure of job costing for tracking expenses also provides the following benefits:
- Gives peace of mind as you don’t have to worry about lost numbers or forgotten costs
- Lets you produce hourly cost rates against your engineers to determine an overtime pay rate
Creating Reports for Better Decision-Making
With the power of a few simple clicks, a company can generate reports on specific topics such as customers, jobs in progress, job completion times and geographic location. Reports providing project costs can be compared with how much was made overall, revealing profit margins.
Additionally, you’ll also have data on hand with a breakdown of all quotes and scheduled maintenance. This is particularly helpful when negotiating prices with your client during a contract renewal. Easy access to reports can also:
- Display your business’s performance in real-time via graphs and pie charts
- Provide data you can use as leverage when negotiating contract renewals
Job Scheduling Made Easy
Scheduling jobs among multiple engineers can be tricky. Not every engineer is free all the time, as some may only work during certain hours of the day. However, this doesn’t mean that they should not be scheduled for any tasks.
Joblogic’s job costing software simplifies the scheduling process, saving time and money in the long run. Managers can immediately see who’s available on-screen and efficiently allocate work to engineers for immediate or future jobs.
Scheduling a large number of jobs for one employee can be like handing them an overflowing bowl. This typically leaves the individual feeling overwhelmed, which can result in a lack of quality work and even lead to burnout.
Other benefits of simple job scheduling include:
- Provides a flexible solution for managers who face unpredictable workload fluctuations due to seasonality
- Lets managers focus on other vital tasks, such as assigning contracts to engineers who are the best fit for the job
Employee Performance Evaluation for Engineers
How are your engineers performing? Company managers often ask themselves this question, but it can be difficult to answer if they lack a performance evaluation process.
Using reports, managers can calculate the average time their engineers spend per project and the number of projects completed. This makes it easy to assess an engineer’s performance with other employees who work on similar types of work. With this information, managers can better determine wage rates or promotion of employees within a company and across departments.
Other benefits of evaluating employee performance are:
- Helps employees meet deadlines and complete work promptly
- Allows managers to provide constructive criticism to employees to minimise mistakes
- Provides insight into which of your employees are the most beneficial to your business in terms of profit margins generated by their jobs
Say Goodbye to Paperwork
Engineers who work in the building service and maintenance industry are prone to making errors while collecting their finances. Since there are tons of documents for contractors to complete, handling such responsibilities always holds the risk of man-made errors. Whether it is filling out complex risk assessments or filling out an invoice, the pressure on engineers to validate proof of labour along with tracking costs is massive.
One procedure of job costing is to automate admin processes, abolishing the need for paperwork. Digital paperwork eliminates the risk of errors and saves time when submitting expenses and health and safety compliance forms.
Features include:
- Customised electronic forms catered for the unique needs of your business.
- Risk assessments for health and safety compliance through mobile forms are available to fill in before engineers reach their job site
- A variety of industry-standard forms, containing provisions and sub-portions specific to each industry
Joblogic Web – ‘Invoice Detail’ screen
Improve Your Job Costing System with Joblogic
Businesses that specialise in the building maintenance sector perform a great volume of tasks. In such a busy environment, the error-prone nature of manual systems has highlighted the need for automation.
Joblogic’s job costing software and job scheduling software has successfully eliminated such problems. This software has made cost tracking very simple by deploying an automated costing system which displays all three variables involved in a job – the expense of conducting the job, the amount of money charged for it, and the profit margin. The benefits of job costing are numerous, and since being founded, Joblogic has become a popular choice for helping businesses handle their financial responsibilities efficiently. It has become a symbol of technological fluency, easing all financial operations within an organisation.
If we’ve piqued your interest, book a free demo with one of our experts to find out more.