Payroll
What is Job Costing?
Job costing is a method of accounting where costs—including labor, materials, and overhead—are tracked and assigned to specific projects, jobs, or clients. In time tracking, it involves employees allocating their hours to specific codes.
Implementing Job Costing
- 1Define job codes or project IDs in the system.
- 2Employees select the relevant code when clocking in or switching tasks.
- 3The system calculates labor cost by multiplying hours worked by the employee's pay rate.
Why Accuracy Matters
Accurate job costing is essential for industries like construction ('hard costs') and agencies ('billable hours') to ensure projects remain profitable and estimates are accurate.
Project Tracking with ClockIt
ClockIt allows for deep job costing with multi-level hierarchies (Client > Project > Task), enabling precise labor cost reporting.
Get Started with ClockItFrequently Asked Questions
- How does job costing differ from process costing?
- Job costing tracks costs for specific, unique projects, whereas process costing averages costs over large batches of identical products.
- Can I track multiple jobs in one day?
- Yes, employees can switch job codes throughout the day without clocking out, ensuring every minute is allocated correctly.
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