Companies operating in the building maintenance sector carry out a large volume of jobs. Jobs differ in size from small reactive works to larger projects. In the maintenance environment job costing often gets overlooked. Especially when a manual system is in place, it’s too time consuming to monitor costs accrued against small jobs. There’s barely enough time to raise invoices. This means that it’s very difficult to get an accurate picture of profitability at contract level.
This is a huge problem. When renewing maintenance contracts it’s critical to know whether you’re making money and who your best customers are. Do you break even on the planned maintenance but enjoy good profit on reactive? You won’t know unless you have the data. Joblogic’s job costing system makes it easy to keep track of costs against even the smallest of jobs. The end result is powerful reporting that lead to better decision making and ultimately, business growth.
Setting up Job Costing
When implementing Joblogic it's really straightforward to setup some job costing rules that can help you to accurately report on spend and profit. You can setup cost rates per hour against each of your engineers. This rate is typically calculated based on salary, national insurance and other costs such as vehicles, training and tools. There's a pay bands matrix which calculates timesheet entries to apply either a basic or overtime rate based on the day of the week and time of day. For materials costing Joblogic has a comprehensive parts library, each with an associated cost.
Selling rates are used to govern the sales rate for labour and percentage markups on materials. Fixed rates can be applied for travel time and mileage. Selling rates can be applied globally in the system or you can have different rates for different customers. Once this job costing data is inputted into the system it's used to power some really useful reporting.
Automated Job Costing
Joblogic Mobile is not only useful for communicating with your field engineers. It's also a job costing app that completely automates costing for you. For example, your back office deploy a job to an engineer at 9 am and he starts travelling at 9:15 am. Let's say he arrives on site at 10 am and completes the job at 2pm. Joblogic would automatically calculate 45 minutes of travel time and 4 hours of labour time against the job.
Any parts used by the engineer would also be recorded and costed to the job. Remember that each customer can have their own selling rates. This means that on completion of the job your back office can see the cost of the job to you, and the sales value to the customer. The profit and profit margin are clearly shown on screen. Providing they're happy the back office can click the invoice button and send the bill to the customer immediately.
Now you've automated job costing it's time to use the data to make decisions. Joblogic has a range of reports that can help you to grow your service business. You can report on profitability at job level, by customer or even by geographical area. There's a league table showing engineer productivity and profitability.
Our contract performance report takes all costs and compares them with the total turnover for a contract but also breaks it down to show planned maintenance, quoted works and reactive. This report is really useful when renewing maintenance contracts and negotiating on price. Our WIP report shows costs accrued against jobs but not yet invoiced. We also have timesheet reports for all of your mobile operatives. They can be exported to Excel to assist with payroll.
Your first step towards efficiency
Do more jobs per day without employing more staff. Get your invoices out the door quickly and improve your cash flow.