How To Track Job Costs For Business Owners: Essential Steps For A Profitable Outcome

It’s no secret that properly tracking job costs can make or break a business. Whether you’re a freelancer, consultant, or small - large business owner, having accurate records of the cost of your work is essential. But with so many different job types and tasks to keep track of, it can be challenging to know where to start.

First and foremost, it’s important to have an effective system in place for tracking your time. This can include using time-tracking software such as Toggl or Harvest, entering timesheets manually into an Excel spreadsheet, using dedicated apps like Everhour or nTask, or even just keeping track of your time in a notebook. Having an accurate record of how much time is being spent on each job will allow you to accurately calculate the total cost of each project and determine the profitability of each contract.

Next, it’s important to keep detailed records of any expenses related to a particular job. This includes things like materials purchased, travel expenses incurred while working offsite, subcontractor fees paid out etc.

It’s also important to store receipts securely so you can easily access any supporting documents if necessary down the line.

Finally – and this is often overlooked – you should also factor in non-billable hours when calculating the cost of a job or project. This could include administrative tasks like answering emails or making phone calls related to specific projects but which don’t generate revenue themselves. Keeping tabs on these associated costs will give you a better idea of how much time and money are really being invested into each piece of work and help prevent losses due to undercharging for jobs.

Tracking job costs doesn't have to be complicated – BUT - if you are confused and don't know where to start ... contact us TODAY and we can ensure that all aspects are covered and help ensure your business remains profitable!