Benefits of Job Costing
We can’t all be as organized as we’d like to be and it’s even more difficult when we have field workers and multiple jobs or job sites. But it can’t be denied that detailed job costing helps today’s most successful companies in many ways.

Increase Profitability
Job costing obviously helps increase your profits because you can see where your dollars are going. But it’s only as good as the effort you put into it. Accurate job costing improves your bottom line in at least four ways:
- Better customer service means your existing customers will stay loyal as you meet or exceed their expectations.
- Accurate records using real-time technology mean you don’t have to worry about human error.
- When you are able to track each employee and each job to the minute, you can more easily calculate your labor dollars. By averaging what you pay your workers and multiplying it by actual hours worked, you can see if you’re getting what you should be out of your workers.
- Scheduling is simplified so you can better control overtime costs.
Better Project Estimates
One way to avoid cost overrun is to know how much to bid on a project from the start. And what better teacher than history? When you look at previous projects that were the same or similar, you will have a good idea of what to bid on a new one.
Better Project Management
Let’s face it: traditional project management is a nightmare. From hand-written notes to constant phone tag, it’s incredibly difficult to manage your crews without technology and even more difficult to do so efficiently.
When you have real-time, automated updates from your workers, supervisors, and foremen, you can quickly access the necessary information and better manage their crews. Workers can view updates to a job or receive new schedules on the fly.
Proactively Respond to Changes on Projects
Some things are unpredictable. Weather, illnesses, or customer requests can toss a wrench into a smooth-running project. When you have job costs at your fingertips, you’re in a better position to compare costs associated with these changes to the estimates and make necessary adjustments.