Job costing for home builders
See budget versus actual for every house and cost code, every month, while you can still do something about it.
Short answer: Job costing for a home builder is the practice of assigning every cost (materials, subcontractors, labor, permits, fees) to a specific house and cost code, then comparing it to that house's budget. It shows which homes and which trades are over or under budget before the house closes.
Why builders lose margin without it
Most overruns are small and spread out: a window package that came in higher, a framing change that was never billed, an allowance that went over. Each one is easy to miss on a company-wide profit and loss statement. Grouped by house and cost code, they are easy to see.
What our job cost report shows
- Each house, with its budget by cost code
- Actual cost to date by cost code
- Variance in dollars, with the big ones called out in plain words
- Change orders: approved, billed and unbilled
- Projected margin for the house, updated monthly
See a sample job cost report with made-up numbers.
What we need from you
A budget or estimate for each house, read-only access to your accounting and project software, and a few minutes to answer coding questions. If your cost codes are a mess, we fix them during setup.
Common questions
What is a cost code?
A label for a type of work, such as foundation, framing or windows. Using the same codes in your estimate, your project software and your books is what makes budget vs actual possible.
Can you job cost in QuickBooks Online?
Yes. We use QuickBooks Online projects or classes along with your Buildertrend or JobTread budgets, depending on your setup.
How often do I get the report?
Monthly, within 10 business days of month end (our target). Builder Controller adds a draw and cash snapshot every 2 weeks.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
Tell us about your homes and your books. If we are a fit, we start with a $750 Job Cost Checkup: written findings and a fixed quote in 10 business days, credited to your first month if you sign up.