Job Costing

Allocate Time to Job Costs and Stay on Budget

At sign out, employees specify their worked activities. These entries are recorded in the Dashboard and matched to a budget. Periodically, project managers input progress estimates.

The Dashboard makes accurate budget forecasts based on budgeted hours, allocated work hours, and estimated progress. Potential budget deviations are highlighted, helping project managers redistribute resources and stay on budget.

Allocate Time to Jobs for Client Billing

Another use of job costing is for invoicing clients.

When signing out, employees choose the client-specific tasks they worked on. Their hours are assigned and form the basis for invoicing the job's labour component to the client.

Solutions for Two Scenarios

Job costing for adherence to budget, and job costing for billing clients.

Stay on Budget

In this example, a construction site has 1,000 hours budgeted for groundworks, 200 for foundations and 300 for assembly.

  1. At project commencement, the project manager uploads the budgeted hours to the Dashboard.
  2. Throughout the project, employees choose from groundworks, foundations and assembly to allocate their hours when signing out.
  3. The project manager can revise the allocations and budget, and periodically estimate progress on each of the three activities.
  4. The Dashboard tracks the actual hours against the budgeted hours, and predicts the likely budget outcome upon completion.
  5. The project manager uses the prediction to reassign employees to different tasks if needed to stay on budget.

If 500 hours have been logged against groundworks, and the project manager's progress estimate is 80% completion, then the Dashboard will predict a surplus of 375 hours upon completion (significantly under budget).

Conversely, if 500 hours have been logged against foundations, and the project manager's progress estimate is 50% completion, then the Dashboard will predict a deficit of 800 hours (significantly over budget).

Invoicing Clients

In this example, a vehicle repair workshop sends invoices to customers based on attendance data.

  1. The operations manager creates a new job in the Dashboard each time a vehicle is booked in for repair.
  2. When employees start work on a vehicle, they sign in to that job.
  3. Upon completion, the operations manager downloads an attendance report for the job.
  4. The work hours are incorporated into the invoice for accurate pricing to the customer.

The Dashboard handles a high volume of jobs with ease.

For quick employee sign in, ensure that only the current workload is listed by deactivating completed jobs in the Dashboard.

Benefits of Allocating Work Hours

Allocating work hours to job costs is beneficial in many areas.

Attendance and Timesheets offers several convenient methods, including at sign in, at sign out, automatically via timesheet rules in the Dashboard, and manual input by project managers.

Benefits

  • Control costs by identifying potential overruns in real-time.
  • Optimise resource allocation by assigning employees to at-risk activities.
  • Invoice clients accurately with pricing that reflects the actual time and effort invested.
  • Evaluate performance of employees based on their job completion rates.
  • Make data-driven decisions from historic data to aid in planning, budgeting and forming realistic project timelines.

Comprehensive Analytics

The Dashboard offers multiple charts and reports to gain insights relating to job costing.

Budget vs Actual

Compares expected hours against actual hours for job costs.

Budget Status Forecast

Predicts budget surplus or deficit for activities at completion.

Activity Snapshot

Comprehensive spreadsheet showing job cost allocations over time.

Unallocated Hours

Detailed spreadsheet highlighting any dates where work hours have not yet been allocated to job costs.

Up Next

Invoice Reconciliation

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