10 Job Costing Accuracy Challenges
Job costing can be quite a challenge when you have a mobile workforce with multiple projects running all the time. It’s difficult to make it easy to have field employees capture the job costing data you need to keep your project on budget and on time. Some companies have hundreds if not thousands of tasks or cost codes that they utilize across their entire organization and could be working on dozens of projects at a time or thousands across the world. Job cost accuracy is one of the biggest issues project-based businesses encounter. Why should businesses be concerned with job costing? When you have accurate labor costs, you can look at ways to reduce those costs in the future and you can also use it to bid more aggressively for future similar projects. Job cost accuracy is also important when businesses are involved with a cost-plus contract where they are reimbursed for expenses by their customers. Cost accountants spend a considerable amount of time to make sure the expenses are accurate before an invoice is issued.
To learn more about how you can increase your job cost accuracy by making it easy for field employees to track labor hours and assets, tasks/cost codes, and jobs/locations, view the WorkMax video.
To see a list of all of the top accounting systems, ERPs, HR, and payroll systems that integrate with WorkMax to drive your job costing accuracy, click here.