Why Is Job Costing So Important in 2020?
Over the last 20 years, Solutions360 has worked with hundreds of businesses to help apply technology that improves business process management and profitability.
One of the most complicated issues that Solutions360 has encountered in the professional services space is the practice of proper job costing methods.
Less than 10% of the companies that Solutions360 works with do an accurate job of job costing prior to our engagement.
The primary reasons for this are:
- Estimates are based on gut feel, invalid assumptions, or flawed models.
- A lack of visibility into what actually occurred on past projects, preventing process changes that would contribute to increased efficiencies the next time.
- Allocation of costs that are not fully or properly burdened.
- No job costing process in place at all.
In 2020, performing job costing using old, inaccurate methods injects significant RISK into your organization. In the past, you may have been able to get away with those inadequate practices. Today, it matters and here is why:
- Margins are continuing to shrink
- There are now better job costing tools available
- Competition is fierce and more aggressive making real time job costing around paramount to success
- Business is volatile
“Having a thorough understanding of the fundamentals of job costing is more vital than ever. Evaluating your projects regularly, both in real time and at project completion is critical to attaining higher margins, lowering risk, and improving cash flow. We are pleased to offer the Job Costing Survival Guide and we are hopeful that business owners and executives will find this to be a valuable tool to get their teams engaged on this important practice.” Roman Burchart, Vice President of Operations at Solutions360
Download the New Solutions360 Job Costing Survival Guide
Take our Job Costing Process Assessment in the guide, to see how the job costing practices at your integration business measure up.
Have you closed your job costing profitability loop?
Do you require a detailed review of your job costing process?
Call us for a no obligation job costing consultation.
We have helped lots of integration businesses, just like yours, achieve profitable growth.