Project Profitability and Job Costing
Profitability in one place
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Labour costs simplified
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Smarter business decisions
Pursue future projects with confidence, knowing you can see early on if you’re on budget or need to adjust.
What is Job Costing?
Job costing is the act of figuring all the different costs associated with a job or project to determine its profitability. The most common costs to be calculated are:
Labour
This relates to the costs associated with the employee(s) who will be directly working on this specific job. Calculate their hourly rate and multiply that by the estimated hours for the job to be complete.
Materials
Every job will require a commitment of physical materials (we’ll discuss job costing in other industries in later articles). These materials come with a non-negotiable cost that will be spent per project.
Overhead
Overhead refers to all of the general “doing business costs” that you associate with running your business on a daily basis. These could include rent, business insurance, accounting, billing, and office equipment.
FAQs
What is job costing and how does it help my business?
Job costing is the process of tracking all the costs related to a job or project to determine its profitability in real-time. Job costing also helps you estimate your future projects with confidence when you can see how past projects went.
Is projects available for QuickBooks Online customers?
Projects is only available for QuickBooks Plus customers. Turn on Projects inside Company Settings to access job costing profitability reports.
What’s the difference between job costing and process costing?
Job costing is specific to individual, specialized jobs while process costing applies to larger scale processes and standardized products. Process costing is typically used by companies that mass produce products that are identical.