Quick Course: 5 Ways to Increase Your Profits On Every Job – Part 1 of 4
With Dave Sullivan
#1: Why Job Cost? + Ways to Use Estimate vs. Actual Reports
Many company owners wonder why they should bother with job-costing. They think they can simply watch their checkbook and wait until tax time to see how they did LAST YEAR. Unfortunately, by then, it’s too late to fix the prior year’s problems.
The reality is that if you run your company without knowing your numbers, you’re “driving in the dark.” It’s not only unwise; it’s downright dangerous!
Job-costing means you track, and can then SEE, the costs you incur and the income you earn for every job.
When you use job costing to track your results, you’ll be able to use several methods to instantly SEEhow to make a massive increase in your gross profits!
You can use “Estimate vs. Actual” reports to:
Spot variances while a job is underway. That meansyou can correct problems– long before they spin out of control!
Analyze “after-the-fact” results. You’ll be able to seeprecisely where actual costs were differentthan anticipated. You’ll be able to use that information to improve your ongoing operations.
When you consistently review Estimate vs. Actual reports – and use the information to improve internal processes and reduce costs– you’ll earn more WITHOUT SELLING MORE, HIRING MORE PEOPLE, OR WORKING HARDER!
