Job Costing – Why and How? With Wes from SynkedUp

Implement job costing to improve the accuracy of your proposals and increase project efficiency, leading to higher profitability.

Track all labor hours meticulously, allocating every hour to a specific job or an unbillable category (overhead) to understand true project costs.

Start by tracking time by job, then progress to tracking by work area (e.g., patio, outdoor kitchen), and eventually by specific tasks if further granularity is needed.

Conduct regular, brief post-job review meetings with your entire team (sales, crew leaders, crew members) to discuss what went well, what didn't, and identify actionable improvements for future projects.

Tie team bonuses or incentive plans to job costing performance (e.g., beating estimated hours) to encourage accountability and quality work, ensuring quality control measures are also in place.

Require a Purchase Order (PO) or job name on every material receipt to accurately attribute costs to specific projects and avoid discrepancies.

Foster team buy-in by explaining how job costing directly leads to increased company profitability and, subsequently, greater success and rewards for everyone.