08/19/2026
Project management starts with a solid job cost accounting system.
To run a construction company effectively, you must know exactly where you stand financially — both at the company level and on every individual job.
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A good job cost accounting system lets you compare actual costs to revised budgets, so you can spot overruns early and keep projects on track. It also gives you a clear picture of your cash position on each job or across all jobs. Cash position shows what you’ve paid out versus what you’ve collected from customers — which tells you whether you’re financing the project or your customer is.
Accurate work in process (WIP) reporting is equally essential. WIP shows where you stand financially on every job, including what you’ve over billed or under billed. With reliable WIP, your financial statements finally become meaningful tools for managing the business, not just paperwork for the bank or CPA.
But none of this works unless the job costing and financial information is accountable. That means: Job costing must be done inside an accounting system that capture costs from the source:
- Time Cards/Payroll
- Vendor Invoices/Payments
- Credit Card Charges
- Billings/Receipts
And it must be handled by a bookkeeper or accounting professional trained in proper accounting principles.
That’s the only way to ensure the numbers you rely on are accurate, consistent, and trustworthy — so you can make the right decisions for your business today.
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Are you looking for an integrated accounting and project management software system that streamlines your job cost management and accounting?