Job and Project Costing Challenges
Know what’s happening today. Not after the job’s done.
In its most basic form, Job and Project Costing is a way of measuring the costs of servicing your clients. And by comparing your costs with your charges, you can see if a profit or loss was made. Sounds simple enough? In theory yes. In practice, not so much. With the increase of competition in all sectors, it’s important to know this on a job-to-job basis. Pressures to be more competitive increases the risk of over-committing – which in turn can lead you to compensating by raising prices – making you less competitive. These risks are all very real, but there is help available… read on.
The best way to avoid this from occurring to your business, is to monitor costs at every step of the way, while making adjustments as needed. But note that simply estimating is not enough. You need detailed information so you can confidently make strategic decisions based on evidence. For example, with detailed information – you can inform clients on the progress of projects knowing the hours you’ve spent so you can plan future work start dates better.
While most businesses know that they have to keep an eye on costs, most actually don’t do it. Instead, they over rely on spreadsheets, fail to understand true costs and/or choose the wrong software – opting for accounting systems with little or no real job and project costing functionality. In addition, these substandard products often over-promise, under-deliver, and can be full of features you simply do not need.
When it comes to job and project costing – you need more than just a spreadsheet or general accounting package. You need a sound system that’ll track jobs from start to finish, generate documents from quote to bill, and track job status and costs. A good system will do all of that while providing comprehensive reporting, supporting complex pricing models, analysing jobs, costs and time, and carrying out scheduling. So what should you look for?
Here’s Two Main Points to Consider:
Firstly, choose a system that looks and feels easy to use. This is crucial because the last thing you want is to end up with a fancy looking system that requires you to be stuck on the phone for hours to support because the system’s complicated. Secondly, you need flexibility. This is key. You need a system that will grow with your business, not one that needs to be replaced 6 to 12 months down the track. A job and project costing system for your business is an investment that should grow with your business, not against it.
The Solution? MYOB EXO Business.
MYOB EXO Business provides you with a purpose built system for tracking and reporting on the status and costs of all jobs from quote to completion, profitability and variance reporting. This means that management can be on top of the decision-making process at all times. It is a must for any business that has to track time, resources, materials and stock. MYOB EXO Job and Project Costing will help your business to:
- Track jobs and resources from one location, with the ability to see where a job or project is at in real time
- Cost jobs, plan resources, track equipment hours, and materials used to allocate a true cost of the job
- Deliver more accurate job quotes / estimates
- Track milestones and variations against projects
- Deliver customised reporting.
Change the way you manage jobs and project costing. Get back in control. Plan accurately. For more information, visit: Job and Project Costing.
Want to discuss how MYOB EXO Job and Project Costing can help put you back in control of your jobs and projects? Let’s talk. Contact us online by filling out out Contact form> You can also email us: firstname.lastname@example.org or call our ERP specialist team on 1300 553 228.