It helps organizations optimize their talent management strategies, allocate resources effectively, and drive overall organizational success.
Job costing Analytics will let AG users track the cost of individual projects and jobs. It involves looking at direct and indirect costs, and it’s usually broken into three specific resource types: Employees, materials, and Equipment.
Understanding costs for a job at this level will help better budget and plan for similar projects in the future, and organizations may discover some ways to optimize costs or find items that should be billed to the customer.
Job costing Analytics provides valuable insights for strategic decision-making. By analyzing job-related data, organizations can align job roles with business goals, identify areas for improvement, and make informed decisions about workforce planning and structure. It helps organizations optimize their talent management strategies, allocate resources effectively, and drive overall organizational success.
Job costing Analytics has delivered the below KPIs and Insights.
|
KPI |
Description |
|---|---|
|
All Metrics |
Analyzing revenue, costs, overhead costs, and profit is crucial for businesses as it provides valuable insights into their financial performance and overall health. Assessing the return on investment for each job helps in understanding the profitability relative to the resources invested. |
|
Job Costing Analysis |
To understand the revenue, cost, overhead costs, Net Profit, and Gross Profit based on your selected date range. |
|
Understand Job cost over a period |
Analyzing trends in job costs over time can help identify patterns and make adjustments to pricing, resource allocation, or project management strategies. |
|
Resource Cost Summary |
A resource cost summary is a concise overview that provides information about the costs associated with the resources utilized in a particular project |
|
Resource Cost Summary & Profit Margin |
The summary helps in understanding how resources, including labor, materials, and equipment Percentage are allocated across different aspects of a project or business operation. |
|
Most Profitable Jobs | Top 10 |
This KPI is valuable for businesses and organizations as it provides insights into which jobs contribute the most to overall revenue. |
|
Less Profitable Jobs | Bottom 10 |
Identifying less profitable jobs and understanding the factors contributing to their lower profitability is crucial for businesses. The Bottom 10 KPIs (Key Performance Indicators) can be instrumental in this analysis. |
Computed fields
Here are the business constraints that are applied.
- All the Metrics are calculated for the applied date range filter.
- Only active Jobs are considered for computation.
- ROI = Net Profit / Cost * 100
Filters
Using filters you can analyze by applying various search criteria, here are the available filters:
Service Category → Job → Service → Customer → Customer Type → Salesperson → Class
The Importance of Job Costing Analytics & Benefits
- Cost Control: Job costing analysis allows businesses to closely monitor and control costs associated with individual projects. By identifying cost overruns or unexpected expenses early on, businesses can take corrective actions to stay within budget.
- Budgeting and Planning: This aids in the development of accurate budgets for future projects. By analyzing costs from past projects, businesses can make informed estimates and set realistic budgets for new projects, ensuring profitability and financial sustainability.
Top 7 ways that Job costing Analytics can help to manage your operations better:
- Profitability Assessment: Job costing analysis helps businesses evaluate the profitability of each project. By comparing actual costs against the revenues generated, companies can assess the success of a project and make strategic decisions about resource allocation and project selection.
- Resource Allocation: Understanding the costs associated with different projects enables efficient resource allocation. Businesses can allocate resources, such as labor and materials, based on the requirements and budget of each project, optimizing overall operational efficiency.
- Price Setting: Job costing analysis provides insights into the true cost of delivering products or services. This information is valuable when setting prices for products or services, ensuring that prices cover costs while remaining competitive in the market.
- Decision-Making: Job costing analysis supports informed decision-making. Whether it's deciding on whether to accept a new project, adjusting project timelines, or negotiating contracts with clients, having a clear understanding of project costs is crucial for making sound business decisions.
- Risk Management: It facilitates risk management by identifying potential risks and uncertainties associated with project costs. This enables businesses to develop contingency plans and mitigate risks, reducing the likelihood of financial losses.
- Billing and Invoicing: Accurate job costing is essential for billing clients appropriately. By associating all direct and indirect costs with specific projects, businesses can generate accurate invoices, reducing the risk of under-billing or over-billing clients.
- Continuous Improvement: Job costing analysis provides a feedback loop for continuous improvement. Businesses can learn from past projects, identify areas for improvement, and implement changes in processes, estimating techniques, or resource allocation to enhance overall efficiency and profitability.