What you’ll hear in this episode:

• What Job Costing means for you
  1. How much did I spend?
  2. How much did I think I was going to spend?
  3. Am I going to be on a budget or over budget?
• Why you should want to work like you do now but make 2x the profit
• “Revenue is for vanity, profit is for sanity, and cash flow is for reality.”
• Basics of job costing:
  1. Identify areas of slippage
  2. Evaluate areas of cost during the job
• Use Leslie’s calculator to find your true labor cost
• How to track labor efficiency into your job cost
• How to find your labor utilization rate
• The “extras”: liability insurance, payroll taxes, workers’ compensation, vehicle costs, health insurance, cell phones, and small tools
• Above the line and below the line costs
• The most important part of job costing: compare apples to apples
• The biggest mistake: creating a budget at the billable rate but job costing at the gross wage
• Dollar variance vs. hours variance
• How to review your estimated cost vs. actual cost
• Strategies for making employees as productive as possible
• Focus on the work you do well
• Manage your work by knowing your numbers
• Three ways to improve profitability:
  1. Spend less
  2. Charge more
  3. Do more work
• Cost reports that we need and KPI’s (key performance indicators) to keep track of
• How to improve job costing efforts in your company

Resources:

www.shinergroup.com Visit Leslie’s website for great FREE resources, like her Labor Burden Calculator, Accounting Flash Report, and Using Quickbooks for Job Costing. Find a link to purchase her book, A Simple Guide to Turning a Profit as a Contractor.