Why is Job Costing important?
The relevance of Job Costing depends on your perspective. If you are customer focused, having the ability to accurately quote for prospective jobs, then keep track of exactly what resources are used on jobs can ensure fair and reasonable billing to customers – supported by evidence if required.
Customers also expect timely invoicing for services performed on their behalf. Job Costing systems allow this to happen with ease.
As with any business activity, there is a need to ensure resources are bought and sold at the right prices to ensure profit. This applies to labour costs of service organisations.
If an organisation is wishing to incorporate best practice / structured processes and workflows in their approach to business, a Job Costing system will assist with this. The system forces the use of rules and disciplines that contribute toward best practice and efficiency.