Job Cost Accounting

The kind of accounting that really matters in the construction business is cost accounting. If the job is not meeting the budget, then the business is losing money. Only by accurate recordkeeping and analysis can you find out where your estimates are off and how to correct them. What Is Job Costing? Construction projects all follow the same pattern. You make a cost estimate as the central part of your proposal to win the job and, once work begins, the estimate becomes a summary of budgeted costs. Job costing is the process of comparing budgeted costs to the actual costs you incur during construction to see if you are over or under budget. The most important thing job costing does is