Job costing-actual
Determining the actual costs associated with the construction project is critical to the success of any job. Using construction job costing and management programs allows one to easily calculate the actual cost of each job and compare it to the estimate. For example, a builder can pull each job from a ‘Sales Order/Contract’ and enter the insurance, tax, and fringe (ITF) rate and select whether inventory, labour, expenses, and subcontractors are taxable or non-taxable.
Additionally, construction job costing software allows a prepaid tax option to be selected to denote if the usage tax was already paid on individual items. The software will also make it easy to add merchandise to an order by either selecting from the company’s inventory or by adding a special-order part to the project. This software even allows one to select the warehouse holding the item and choose the stage of the job where the items will be used.
By having an integrated construction job costing software system, users can point and click to create picking tickets for the merchandise and supplies to be taken to the jobsite and to deduct them from inventory within the business management software. Additionally, one can enter the expenses and subcontractors as they are used and send the invoices to accounts payable. Being able to track the labour and the associated expenses for each stage of the job is also critical to the success of any construction project—not to mention being able to track the usage tax per job and per month or within a given period. All this functionality will ensure builders are maximizing the profits on every job.
