Today’s episode of Google My Business Problems is all about job costing. Julie Shopa from Clarity Finances is here to help you guarantee a profit on your jobs. This is useful for any industry where you have to spend money to make money- Whether that means buying yarn for a blanket or a subscription for a service.
The technical definition as stated by Accounting Tools is: “Job costing involves the accumulation of the costs of materials, labor, and overhead for a specific job. This approach is an excellent tool for tracing specific costs to individual jobs and examining them to see if the costs can be reduced in later jobs. An alternative use is to see if any excess costs incurred can be billed to a customer.”
Why Job Costing is Important
You can’t afford to not know your cost of goods. Pricing out your jobs helps you create a mini profit and loss report per job. By regularly practicing this method you will know:
- What it costs you to fulfill a job
- How much money you’re making after the cost of goods
- If you need to increase your prices
Knowing the costs allows you to maintain a healthy profit margin, as well as project the success of your business. By working with a Quickbooks Pro Advisor like Julie Shopa, you will get a ‘top-down’ view of your jobs and where you need to adjust to create steady growth in your company.
When it comes to costs and books, any step you take towards being more in control of your finances will benefit your bottom line. Far too often business owners are taken by surprise that their jobs aren’t actually making them money. When you know your costs, you can protect your profit before you pitch your proposal.
Still aren’t sure why pricing out your job costs is so important? Contact My Clone Solution here for a quick call. Once you’ve filled out the form, we’ll get back to you within 48 hours or less.