One in 4 construction businesses is at risk of closure due to inaccurate job costing. Here’s how QuickBooks Time and QuickBooks can save the day.
While keeping projects on time and under budget is essential, it can be incredibly difficult for businesses to know the true health of a project. Consolidating and interpreting job data can be a complex and time-consuming process.
Industries that deal in long-term or custom projects face higher risks to their overall profitability because creating accurate estimates for jobs with unknown variables can be tough. A construction company, for example, can learn from short, common projects faster because they are performed regularly. More detailed, multi-year projects are riskier. If the company gets one of these longer projects or a project they haven’t already completed several times, it’s more difficult to create an accurate estimate.
To explore the common challenges construction companies are up against and uncover the repercussions of getting job costing wrong, it helps to put the situation in context.