It takes just one unidentified cost, one slight overrun, one gap in your inventory to transform that delicate profit margin you built into a quote to turn into a loss. Problem is, the data you really need to know is all too often viewed sporadically, long after a job is completed when it’s too late anyway, or not at all.
Accurately capturing your manufacturing costs isn’t just a challenge. For many, it’s mission impossible. Getting each price right for your quote can be a major headache. Without access to the relevant information, quotes are based on guesswork, pure and simple. Call it a hunch, call it a gut feeling, but a guess it remains. That’s no way to grow a business
Five benefits of using an integrated cloud-based ERP with job costing system:
1. Fast Cash - Instantly reconciling the relevant costs to each project to power faster invoicing process to bring in cash more quickly.
2. Cost Control - Continuous monitoring of the production process keeps you on top of what’s going right—and what’s going wrong. You’re always in position to identify potential issues and take the action to avoid profit-burning situations.
3. Accounting Organization - Real-time, accurate cost tracking keeps all costs classified correctly and not thrown into a bucket of unanswered expenses. Take period expenses such as sales and marketing for example: a system should be capable of automatically grouping them under your income statement rather than classing them as a manufacturing overhead.
4. Insight not Oversight - With accurate job cost reports, it’s easy to compare the actual costs of every project to your original estimates. This rich vein of insight helps you identify the most profitable types of business, so you know where to concentrate sales efforts.
5. Future Focused - Every time you deliver a job, you get hands-on fresh data that not only shows all the costs associated with the job but breaks down those costs into specifics. You can then use that insight to hone your processes, shave costs, allocate labor more effectively, even negotiate a better deal on materials you‘re buying in bulk.
An integrated ERP that includes job costing helps you turn the guesswork into reality and protect those hard-earned profits. It represents a highly efficient way of capturing the exact costs of materials, labor, and overheads of every job in real-time, all the while providing you with the insight you need to make decisions faster.
Learn more about reasons to consider an integrated ERP with job costing capabilities by downloading 10 Reasons why Accurate Job Costing is Essential for Your Shop.