I’m not sure I’ve ever had a client who needed to job or project cost, who wasn’t guilty of making some job cost mistakes. And in this challenging economy, that can be costly. So what are the mistakes I see them making?
- Poor Setup: I frequently find that there are problems in their QuickBooks setup. That would include the chart of accounts, the items list, payroll, missing indirect costs, etc. If the setup is incorrect, then the results will be as well. Faulty data can lead to either under or over estimating. If you overestimate, it could cost you the bid, but if you underestimate, the more common issue, it could eat into your profit, or even worse, you could lose money on the job.
- Mis-use or not use items: While you have to use items on estimates and invoices, they’re often ignored in the rest of the process. But items are crucial to some of the job cost reports, so often these reports become worthless. Or I find the items list is overly complex, duplicates, etc. so again, it makes reading job cost reports much more difficult and sometimes worthless.
- Not taking advantage of customization, automation and other powerful QuickBooks features: What I frequently hear is I can do it this way, which is usually true. However, that way usually takes much longer and could be prone to more mistakes – both cost the company money in lost productivity.
- Missing out on good reporting: If QuickBooks is setup incorrectly, then the reports are flawed. I sometimes find that clients miss out on good job cost reports because their version of QuickBooks lacks some helpful job cost features so they miss out on some useful reports. Or, they simply don’t understand how to use some of the existing reports and again miss out on really helpful information.
It’s worth taking the time to get trained so you can get the information you need from QuickBooks. I’ve put together a program to teach businesses how to capture job cost data– correctly, completely, and more efficiently.
For a preview of what all I’ll be covering in my in-depth series, watch this FREE webinar (seminar on the web) 5 Keys to Better Job Costing in QuickBooks so You Can Increase Your Profitability.
In this webinar, you’ll learn:
- 6 Common Problems Contractors Have
- 4 Common Mistakes QuickBooks Users Make
- 5 Keys to Increasing Your Job Profitability
Simply click on the link below to watch this FREE webinar.
I look forward to helping your business make dollars and sense with QuickBooks!