10 Reasons Why Accurate Job Costing is Essential for Your Shop

Why you should use accurate job costing to boost profit margins.

We all know the story. Margins getting squeezed. Customers playing hardball on price. The economy has gone global. At the same time, you want to be competitive. You want to grow. And yep, you want to keep turning a profit.

That’s why, for any SMM, job costing has become an indispensable part of a successful business. Costing really can make the difference between achieving your ambitions and struggling to survive.

When profit margins are the driving force of your business, you need to stay on top of every cost of every job. Otherwise, you might be in for a shock come the end of the year. Because however frantically busy you may be, any unexpected, underestimated, or unidentified costs can quickly eat those earnings away.

That’s why we’re giving you the lowdown on job costing.

The basic principle behind job costing is to track costs for jobs, make sure they remain profitable, and deliver them on time. Accurate insight into the cost of each individual project then supports better informed business decisions.

For example, you can use the data gleaned from previous jobs to more accurately predict the costs of future projects. That puts you in a far stronger position to evaluate new opportunities, choose the projects you know will make money—and avoid those that will end up soaking up profit.

Thinking beyond the shop floor, that knowledge also guides your sales and marketing efforts towards the kind of activities you know offer the highest margins. In fact, when you get it right job costing offers an impressive range of real-life benefits that can hone your operations and boost your profitability.

Download the whitepaper to continue reading and explore the 10 reasons why accurate job costing is essential to your manufacturing success.

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