Job Costing5 min read
Job Costing for Landscapers and Contractors
Job costing helps landscapers and contractors understand which jobs make money by tracking revenue, labor, materials, equipment, and subcontractors.
Short answer
Job costing tracks revenue and direct costs by job so landscapers and contractors can see gross profit and gross margin instead of relying on total revenue.
Checklist
- Track customer and service type.
- Track labor hours and labor cost.
- Track materials, equipment, disposal, and subcontractors.
- Track sales tax separately when applicable.
- Review gross profit and gross margin by job.
- Use the results to price future work better.
Common mistakes
- Judging jobs only by revenue.
- Mixing direct job costs into overhead.
- Ignoring labor cost.
- Not separating materials, subcontractors, and equipment.
Examples for service businesses
- Example: $5,000 revenue, $1,200 materials, $1,500 direct labor, $300 equipment/disposal, $2,000 gross profit, 40% gross margin.
- A landscaper can compare maintenance work against installation jobs.
- A contractor can see whether subcontractor-heavy jobs are priced correctly.
Job costing improves future pricing
When actual job costs are visible, owners can adjust pricing, crew planning, and material estimates instead of guessing.
Request a Bookkeeping Review
Sabillon Advisory helps contractors and landscaping companies set up QuickBooks so they can see which jobs actually make money.
Request a Bookkeeping ReviewRelated resources
Related support from Sabillon Advisory
If this guide describes the bookkeeping problem you are dealing with, these services are the most relevant next step.