Accurate Job Costing Improves Profits

Do you include all of your costs when preparing a contract bid? Job costing involves not only the direct expenses of labor and materials, but many indirect costs such as depreciation, overhead, employee benefits, equipment, tools and other outlays necessary to operate your construction business -- even if they are not related to any one specific job.

Don't forget to consider all of these indirect costs and compute them accurately when you bid a job. With detailed job cost reports, you can track the profitability of each project.

Contact HBK. We can help you develop or fine tune a job costing system that accurately reflects the cost of doing business. More precise estimates lead to more profitable bids.

About the Author(s)

Bill is Principal-in-Charge of the Sarasota, Florida office of HBK CPAs & Consultants. He became a Certified Public Accountant in 1998 and merged with HBK in 2009.

Bill has extensive experience in the areas of taxation and business consulting for the construction industry. In 2005, he became a Certified Construction Industry Financial Professional. Bill also provides accounting services to various closely-held businesses in other industries as well as individuals.

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.