How to Locate and Charge for Lost or Invisible Costs [Info Plus Accounting]
Here is your continuation of our mini-course 5 Ways to Increase Your Profits on Every Job!
In Part 2 we discuss using Job Costing to Locate and Charge for Lost or Invisible Costs. Here are just a few of the highlights:
If you DON’T job-cost, it’s easy to miss various Time and Materials (T&M) costs that accumulate on a job.
Even when you charge a fixed price for your projects, you may very well encounter Change Orders as a job progresses.
If you’re job costing, many software programs (such as QuickBooks desktop) will help you easily convert job costs into Invoices.
If you fail to invoice your customer because you don’t see the costs related to each job, you’re losing the out-of-pocket costs for the related materials or labor, as well as your accompanying mark up.
Missed invoicing means that you (and your family) are making costly gifts to your customers!
When you can invoice based on accurate information, you’ll earn more WITHOUT SELLING MORE, HIRING MORE PEOPLE, OR WORKING HARDER!
