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Job costing and WIP reporting for contractors

A company can post a profit while individual jobs lose money. Job costing and a work-in-progress schedule show you which is which, while the jobs are still open and can be fixed.

What job costing is

Job costing tracks the revenue and the real costs of each job: labor, materials, subcontractors, and equipment. The result is a profit figure for every job, not just one number for the whole company.

What a WIP schedule tells you

A work-in-progress schedule compares what you have billed on each open job to what you have earned based on how much of the work is done.

Overbilled: you have billed more than you have earned. Cash looks strong, but you owe the customer work.
Underbilled: you have earned more than you have billed. The work is done, but the cash has not arrived.
Margin fade: a job that was bid at one margin is now trending lower.

Lenders and bonding companies commonly ask for a WIP schedule, so having a clean one ready also helps when you need financing.

What I set up

A cost-coding structure in QuickBooks so every cost lands on the right job
Estimate-versus-actual tracking for each job
A monthly WIP schedule you can read in a few minutes
Flags for jobs whose margin is slipping against the bid
A fair way to spread overhead across jobs

Why I do this work

I am co-owner and CFO of a construction company, and job costing and WIP reporting are part of how I run its finances every month. I also co-own a tree service. Both depend on knowing job profit before the job closes.

Let's look at your numbers together.

Send a note with a little about your business. I reply personally, and the first conversation costs nothing.

Email Zach zach@zwilsonconsulting.com 218-850-7555