ERP Implementation

The 5 W's of Job Costing: How Software Answers Them All

Written by Andi Conti | May 20, 2013 5:00:00 AM

 

Quote it. Fix it. Invoice it.  Job costing is sometimes easier said than done.  When considering software to streamline this process, these are the 5 W’s to keep in mind.

WHO:  Stop for a moment and think about who is involved in determining the costs for a certain job.  The contractor quotes it and passes it to operations.  Once the work is done, this list is then passed to the accountant.  Before you know it, the job details and costs have been all over the shop.   With job costing software, any user, at any time can gain visibility into the job.

WHAT: What does job costing software keep track of?  If you’re familiar with Enterprise Resource Planning (ERP), then you know that you can tailor software that specifically calculates each job uniquely.  Just to name a few, job costing software keeps track of bills of materials, labor expenses, consumables & raw materials, and other external factors.  This type of software also enables tracking and financial views.

WHEN:  When is job costing software most valued?  The short answer is in its ability to reduce complexity.  Having a software system that erases the need for several spreadsheets, ensures accurate accounting, while also reducing the time spent tracking costs will save you time and money in the end.

WHERE: Where is job costing software seen most?  Job costing software is relevant to the Managed and Professional Services industries, Engineering, Maintenance, Repair and Overhaul (MRO), Discrete Manufacturing, Oil & Energy and other industrial type industries.

WHY:  Why is software for calculating job costs so important?  The fundamental reason for job costing software is to keep you and your business profitable.  Having the ability to see into the most profitable jobs not only keeps you in business, but keeps you profitable.