Maximising profitability in a project-based business requires tight control to ensure all costs and resources are utilised and recorded efficiently.
With job costing software you can keep tabs on how much you’re spending throughout extensive projects, to ensure they remain profitable.
Using this software can allow you to have greater business agility and improved financial performance, as costs or time spent can be defined for each team member or contractor.
Here are four more reasons why a single platform such as job costing software can improve profits for your agency:
One of the biggest benefits of job costing software is its attention to detail.
It can be all too easy to set out work to clients with great enthusiasm, only to find that a small detail has been overlooked or a mistake in the budget has been made. And once a quote has been made to the client, there isn’t much you can do.
Comparing estimates to actual costs on previous similar projects is vital, in this way you can continually improve the accuracy of your estimates helping ensure tasks don’t take longer than anticipated.
Correct pricing is crucial for profitability. With the right job costing software in place, quotations can be highly accurate, faster and more likely to reflect your team’s experience.
Captures project costs correctly
From a profitability perspective, having a bird’s eye view of all the associated costs on a project, is essential.
You have the ideal platform when using this software to increase or decrease spending on different areas of the project.
By having an overview of all expenses, you can realise in an instant if there has been any overspending on your project and whether there are any billable extras to recharge.
With so many staff working across multiple tasks on several projects, it is inevitable that there can be slip-ups every now and again. Job costing software allows you to be informed along every step of the process, warning you of issues while there’s still time to act.
With all project and financial data combined in one location, it is easier for staff across several departments to communicate without unnecessary emails and calls when deadlines are looming. For example, project managers and the finance team could both have eyes on important documents in real-time, enabling everyone to stay on top of progress, time spent and all financial aspects.
Tayburn, an Edinburgh-based design firm, implemented job costing software and found Synergist useful as their team could see real time how many hours was allocated to each job and how much time was left, which allowed for greater transparency on who was available for jobs and when.
Every business will be concerned with its operating margin and the profit being made. By restricting over servicing and ensuring prompt accurate billing, job costing software helps maximise profitability.
Job costing software allows visibility of public deadlines which will improve accountability and thus, productivity. But one major benefit of this tool is that details of projects and progress is recorded in real time, saving an incredible amount of effort spent chasing for updates. Duplication is also avoided, making the whole process more efficient.
If you want to enhance your agency’s profitability and productivity, make sure you invest in this software and take your company forward this year.