Guide

Job costing for service contractors

How to track labor, materials, subcontractors, expenses, and margin per job without turning your team into accountants.

Step-by-step

Step 01
Define the job record
Every cost should attach to one work item, project, or invoiceable job. If costs float outside the job, margin becomes guesswork.
Step 02
Track labor from the field
Use clock-in data or timesheets to capture hours by person and job. Even simple time capture improves margin visibility.
Step 03
Separate materials and expenses
Materials, tools, fuel, permits, and subcontractor costs should be categorized before invoicing closes.
Step 04
Compare estimate vs. actual
Look at estimated labor/materials against actual time and expenses. This is where underpriced work becomes visible.
Step 05
Review margin weekly
Do not wait until month-end. Weekly job costing catches scope creep early enough to correct it.

What is job costing?

Job costing tracks the revenue and costs tied to a specific job so you can see gross margin and understand whether the work was profitable.

What costs should service contractors track?

Labor, materials, subcontractors, equipment, fuel, permits, disposal, payment fees, and any job-specific overhead.

How accurate does job costing need to be?

Start directionally accurate. Capturing the biggest labor and material costs is more useful than waiting for perfect accounting detail.

How often should I review job profitability?

Weekly for active jobs and immediately after completion for closed jobs.

What causes jobs to lose margin?

Scope creep, under-estimated labor, missing material costs, unbilled change orders, slow approvals, and late invoicing.

Can BisHub help with job costing?

BisHub connects work items, time, expenses, estimates, invoices, files, and reports so teams can review job-level performance in one place.