Being a successful contractor is more than just what goes into building an office tower, house or apartment complex. No matter how skillful the business is on the site ground, it will go into trouble if the contractor cannot control the financial time. Therefore, a contractor should invest time and effort in analyzing reports.
QuickBooks desktop version offers not only simple financial reports which every business need such as Profit and Loss, Balance Sheet, etc. but also Job-relating reports. This blog introduces contractors to 5 job-relating reports which are really useful for you. Those could help you keep your project and business on sound ground.
1. Job Estimate vs. Actual Detail
This is the most used and helpful report for contractors. By showing both estimate and actual cost and estimate and actual revenue, this report could help the contractor see the differences between what was estimated and what is in reality. Job Estimate vs. Actual Detail lists all items relating to the job in the order. Therefore, the contractor can see the comparison line by line. Information from this report is also used to calculate in the WIP (Working-In-Progress) reports.
2. Job Profitability Reports
In the case of a contractor just would like to see the differences between the amount of money they paid and were paid, Job profitability reports are good examples. There are 2 versions for Job Profitability Reports – Job Profitability Summary, which summarizes the profits the business earned from servicing each construction customer within the date range and Job Profitability Detail, which works on the same basis but for a particular job. The key indicator in both reports is the “different” column. Based on the report, contractors have a clear view of where they can stand financial in the overall business.
3. Job Progress Invoices vs. Estimate
If the contractor uses Progress Invoicing, which is recommended, the contractor should concern of Job Progress Invoices vs Estimate Report. Whether or not the estimate is active, it is shown in this report. By analyzing this report, the contractor can keep in the total how much the estimate is, how much has been billed and the percentage of the estimates which are already invoiced in the progress invoicing.
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4. Time by Job Detail
Contractors can use QuickBooks to track time per employee working on a Project. Consequently, they can generate the Time by Job Detail report seeing how much time was spent on a project by each employee. From that point, they could change or improve the working hours and the effectiveness if needed.
5. Items Estimate vs. Actual
A contractor might provide a variety of services. This report can help them analyze how close the business estimated costs and revenue for each item and construction phase. The contractor can use the report controlling, managing and making decisions to keep the business moving toward a financial position.
Successful contractors don’t need to have a degree in accounting or financial management, but they need to be more thorough in their financial decisions. Paying consideration of the 5 job reports can get the business moving in the right direction.
If you need advice or services on any aspect of bookkeeping, accounting and tax, our specialists are ready to help. Get in touch with us for free quote.