Other Industries, Business Tips
Use Accounting Software for Construction Contractors to Increase Profitability
Table of Contents
Accurately predicting job costs in the trades can make or break your bottom line. The more construction companies and other service businesses know about the actual costs of providing a full scope of services, the more informed decisions they can make to increase company profit.
Want to grow your construction business? Click here to get a demo.
How does job costing software work? Contractors use ServiceTitan’s cloud-based job costing software to capture all-important data and boost profitability. Job costing tools track progress on construction accounting, and show the profit on any job based on materials, purchase orders, equipment, or payroll costs.
According to a QuickBooks survey, one in 4 respondents believes just two or three inaccurate estimates could tank their business. In any home services business or construction business, inaccurate projection or budgeting detrimentally affects performance and growth.
Instead of keeping track of projects on pen and paper, or guessing at job completion percentages, customizable construction management software gives you real-time data on job progress and enables you to monitor profit margins.
What is job costing software?
Job cost software automates an accounting system that tracks the accumulation of costs and revenue for each job. Key areas of job costing include labor costs, materials, and overhead. Accurate budgeting and estimates depend on the accuracy of these figures.
Job costing software is a software system that benefits large construction companies and small business project management because it keeps all projects financially on target. Companies gain on future jobs, too, because this business intelligence enables them to examine past job costs and compile more accurate estimates and customer pricing. This generates a greater profit margin and enables realistic growth projection.
Track Progress on Job Details
Stay on top of job progress from start to finish
Make adjustments based on real-time data
Tracking a job in detail gives you greater control. ServiceTitan’s job cost accounting software tracks work in progress and identifies potential risks, so you can complete jobs on time and within budget, from service and maintenance to construction projects.
Exercise control over your entire project workflow by using color-coded project labels, which allows you to break down the budget by each category, so you easily can find needed data at a glance.
Change orders can throw a project off budget, as will increased materials costs or additional labor, such as specialty subcontractors. Protect your budgets and proactively manage risks through detailed tracking of productivity, inventory, and change requests, giving instant insight into job progress and status.
Since labor often comprises the biggest expense of a service management job, utilize time tracking to stay on top of cost. Track time with ServiceTitan’s payroll software, which designates payroll and timesheet job costs when technicians work jobs across different departments.
Job costing software enables project managers to see what’s happening in real time, so you can make quick, data-driven decisions to keep projects on budget and maximize profitability.
The #1 newsletter for the trades.
Manage Project Financials
Integrate with construction accounting software for up-to-date data
Make faster budgeting decisions
A successful WIP (Work in Progress) project requires detailed financial oversight, from labor rates to material surcharges.
Automation through integrated construction accounting software leaves nothing overlooked. ServiceTitan’s job costing software seamlessly integrates with QuickBooks and Sage Intacct, recording data from sold estimates, job invoices, purchase orders, payroll, and accounts receivable.
Up-to-date data means you can stay on top of budgeted versus actual cost, allowing you to manage cash flow, make faster decisions, and stay within budget. The breakdowns show clear variances in cost, as well as at-a-glance percentages of the budget used, to increase functionality.
ServiceTitan’s mobile app enables technicians quick access to pricing and product updates, providing a management solution for your whole team.
Improve Cash Flow
Efficiently manage billing cycles
Increase revenue in the field
From estimating and bidding to purchase orders and invoicing, job costing management software increases your efficiency and revenue.
You can also set a billing schedule based on job progress. The project summary shows accounts receivable details, so you know the proper time to bill and the remaining owed balance based on your job progress or construction project phase. It’s easy to update project values as changes occur.
Construction job costing software works in conjunction with sales strategies, such as providing good-better-best estimates in the field. Creating improved task descriptions and giving techs the ability to create multiple estimates at different price points shows customers your company possesses knowledge and skills to complete the job.
ServiceTitan’s payment software enables techs to accept payments in the field and gives customers flexible payment options, all while streamlining your office’s accounting tasks, so you can increase cash flow.
Track profit margin on every job
Capture data to boost profit
Construction project management software enables companies to instantly track profit on every job. Integrated financials allow you to compare cost to revenue, spotlighting your profit margin in dollars and percentages.
Gain visibility into your expenses. Since generating a profit begins with the budgeting process, job management allows you to practice cost control, so you can reduce expenses and boost profit. Expenses factored into the calculation of profit margin include the costs of labor pay and labor burden, equipment, materials, and taxes.
Many factors play a part in forecasting profit, but capturing—and using—real-time data keeps your company’s financials on track for success.
Advance Company Direction
Leverage data for future profit
Focus on profit-generating jobs
A job costing software solution like ServiceTitan gives you the information you need to make better decisions on service, maintenance, installation, or construction jobs.
Whether you work in the home services industry or construction industry, data from past jobs enables you to create more accurate estimates and make better management decisions.
Data from job costing software provides a template for future estimates, because you can see how many actual hours it took to complete a certain type of job, or the exact amount of material costs. Job-cost accounting software gives you data-driven insight into which projects generate profit, so you can steer your company toward growth.
ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25% in just their first year with us.