Do you find you underestimating your jobs all the time? You might need to start getting help from your bookkeeper or figure out how to track your expenses. This is one way you can start getting a better understanding of what projects cost. You will then be able to better estimate your jobs.
Let’s start with Projects in QuickBooks Online. This tool is super helpful for when you want to start job costing and know your project numbers. It can also help you to know the profit margins of your projects. If you look on the right hand section, you can find where Projects lives. As long as you add all the expenses and income for the specific job in this section, you’ll be able to see all the numbers.
Keep tracking your numbers over a few projects. Take a look at what the average is for all the different costs. Are you also paying for labor? Try seeing the average cost of labor and add this in. Once you have a good picture, keep these numbers on top of mind the next time you have an estimate to make.
Another way to protect yourself from estimation problems is to track prices. Keep a spreadsheet or note of your most common expenses. If you notice a change in pricing, change this in your list. This way you can avoid any price shock on your end.
Watching your numbers is super important in business. This is the one way you can help your business to grow. With time, keeping up with estimations will become second nature and underestimating with be a thing of the past. If you feel overwhelmed by spreadsheets or Quickbooks Online, reach out to me for help!
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