Insights · Profit ·
Job costing for builders and trades
If all your revenue goes into one bucket, you can’t tell which jobs make money. Job costing fixes that.
Set-up
- Create a tracking category or project for every job.
- Code every supplier bill, subcontractor invoice and timesheet to a job.
- Code progress claims and variations to the same job.
- Keep overheads separate, then allocate a sensible rate.
Monthly review
- Quoted vs actual margin by job.
- Variations not yet invoiced.
- Work in progress: costs incurred but not yet billed.
- Jobs overrunning on labour.
Why it matters for QBCC and the bank
Accurate WIP and job profit feed into your balance sheet, which drives QBCC MFR tests and lender confidence.
Pair it with markup vs margin.
Want this looked at for your business?
Book a free 15-minute Financial Health Check with Tereza, our practice manager. We look at income, tax, the business, mortgage, insurance and super in one go. Short on time? Grab a 5-minute quick chat.
Sources
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General information only. This doesn’t take your circumstances into account and isn’t tax, financial or legal advice. Talk to your accountant or registered tax agent before acting. PRM is not a registered tax agent; tax agent services are provided by Australian Tax & Super Pty Ltd (TPB 25291395).