One of the most common financial issues I find contractors dealing with is properly determining what it costs them to be in business. Without that proper financial foundation, any pricing calculated from it will be a shaky structure at best. We’re not going to talk about proper pricing in this column. We’ll set that aside for another time. Let’s focus on proper job costing.
Online Exclusive: Accounting Basics for Small Contractors — Job Costing
Proper job costing includes all costs associated with a job They include materials, labor, permits, subcontractors, equipment rentals and overhead costs applied to the job How do we allocate the proper amount to the job? Single-source overhead allocation Dual-source overhead allocation I am a strong supporter of job costing every job your company does