How do I track job profitability in real time?
Real-time tracking doesn’t mean watching a dashboard update every second. It means costs are recorded close to when they happen, usually within a day or two, and you’re reviewing them weekly rather than waiting until the job is done.
The hardest part isn’t the software. It’s the discipline to capture data consistently.
Labor hours need to be logged daily by job. If your crew works on three projects in a week, you need to know how many hours went to each one. Time tracking apps make this easier, but even a simple paper log works if someone enters it into your accounting system before the week closes.
Materials and expenses need job codes at the point of purchase. When you buy lumber, don’t dump it into a general materials account to sort out later. Code it to the job right then. The same goes for credit card purchases, supply runs, and equipment rentals. A construction bookkeeper in American Fork can help you set up cost codes that match how you estimate and build, which makes coding intuitive rather than a guessing game.
Subcontractor commitments matter as much as payments. If you’ve signed a contract with an electrician for $25,000 but only paid $8,000 so far, your real cost exposure is $25,000. Track committed costs alongside actual costs or you’ll think you’re under budget when you’re already over.
Review budget versus actual weekly during active construction. Pull a report showing each job’s budgeted cost, actual cost to date, and committed cost. Do this every week. A monthly review means you find out about overruns after it’s too late to do anything about them.
The combination of timely data entry and weekly reviews is what makes job costing useful rather than just historical record-keeping. You catch problems while there’s still time to adjust.
Most contractors who struggle with job profitability aren’t missing some special software feature. They’re entering data too late or not reviewing it often enough. Fix those two things and real-time tracking becomes possible with whatever tools you already have.
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More Questions
How can I improve profit margins on my construction projects?
Start by knowing exactly where your money goes on every project. Detailed job costing by phase and cost code reveals where margins leak. Use that data to catch overruns early, improve your estimates, and bid selectively on work that fits your strengths.
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Several types of providers handle contractor payroll in Utah including national payroll companies, local bookkeeping firms, and construction-specialized services. The right choice depends on whether you need job costing integration and certified payroll capabilities.
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Track parts by logging them against each job in your field service software or QuickBooks. Truck stock is the hard part since inventory moves across multiple vehicles. Regular counts and a simple checkout system for warehouse transfers keep your numbers accurate.
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QuickBooks Online or Desktop handles most HVAC contractors' needs when set up correctly for job costing. The bigger question is whether you also need service management software for dispatching and scheduling.
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Standard bookkeeping tracks income and expenses but doesn't show which jobs actually made money. Contractors need job costing, progress billing tracking, and work-in-progress accounting that generic bookkeepers rarely understand.
Read answerWhat bookkeeping firms serve the Salt Lake City area?
The Salt Lake City metro has many bookkeeping options from solo practitioners to full-service firms. The right choice depends on your industry, the services you need, and whether you prefer local or virtual support.
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