Job Costing
Definition
The estimated remaining cost to finish a job. Together with costs to date, it sets total estimated cost and drives percent complete.
Cost to complete is the most judgment-heavy number in construction accounting. Project managers should update it monthly from the field, not just subtract costs to date from the original budget.
Total estimated cost
Total estimated cost = Costs to date + Cost to complete
A revenue recognition method that books contract revenue in proportion to the work completed, usually measured by costs incurred against total estimated costs.
Tracking labor, materials, equipment, subcontractor, and overhead costs against each individual project and cost code, so you know what every job actually costs.
A decline in a job's projected gross profit over its life, comparing the margin at bid or contract to the margin projected today.
Job Costing
Company-level profit hides losing jobs. A practical setup for cost codes, labor burden, and committed costs so every project shows its real margin.
Done-for-you construction finance
BuildFlash runs your monthly finance on top of the software you already use, with a fractional CFO reviewing the numbers with you.