Job Costing & Time Management
The purpose of any business is to make money, and for a project-based business, proper job costing is the most effective way to ensure that occurs. Job costing is the accounting which tracks the costs and revenues by project and enables standardized reporting of profitability for each job. For a typical job, this will include direct material, direct labor, subcontract costs, and other indirect costs used to support the project.
How Does it work?
Setting realistic and complete estimates and tracking all the costs that are incurred in delivering a project from start to finish is critical to drive profitability in a project-based business. However, doing this using a rear-view mirror is not helpful to consistently reach profitability across your portfolio of jobs.
As in other areas of your business, Q360 orchestrates all the moving parts of your project management office (PMO). Built-in workflows create seamless hand-offs from sales to operations and then at substantial completion from operations to service. Each hand-off enforces accountability upstream for quality and completeness; ultimately stoping any leaks in profitability.
The Q360 project tool not only manages the operational functions, but the project accounting as well. Q360 uses a fully burdened cost that hits the job in real-time. This allows you to see the equipment and labor costs incurred and if they are over or under the budget on daily basis. You can see an immediate erosion of margins allowing you to take corrective action in a timely manner. Each project manager can see this at the job level, and it can roll up to any segment of the portfolio of jobs.
Couple this with visibility into your labor demands across your backlog; by labor type by month or week against your labor capacity by type and you can ensure your staff are utilized to their fullest potential. The visibility into staffing schedules; where you are under and over capacity, allows you to make adjustments in the coming weeks and months to allow you to pull your full potential of revenue out of your backlog.
Embedded management of both internal and customer driven change orders sets you up to capture new revenue for changes in scope and to account for all cost overruns as they happen.
Q360 automates your billing tasks, purchasing and payments directly through the project taking the lag time out of the process which gives all the stakeholders real-time visibility into how they affect the project as well as the overall picture of how well the job is doing.
These moving parts are driving a real-time profitability summary on each job. Automated deferred revenue and revenue recognition ensure you are always aware of budget, projections, actuals and earned profitability across your jobs.