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Costing: how is each job, product and service doing?

What are the profit margins in each part of your business?

Do you know how each job, project, product, service or location is performing? Is the way you price reflected in the results shown in your accounts? Is it possible to tell, and does it matter? Our Managing Director, Graham Potts, explains:

You most likely have a ‘gut feeling’, but very few accountants will show you how your jobs, products or services are actually performing. It’s essential to understand this so you can make sure that you have the right product, service or customer ‘mix’. We often see customers price at, say, a 40% gross margin, but only achieve, say, 20%. We can help not just explain the difference, but sort out the underlying problems.

‘Job costing’ used to be an after-thought for accountants, but it’s at the front of our mind when we get your systems set-up. We’ll always look for the simplest solutions, which might be using Xero’s built-in tracking, Xero Projects, or an add-on from the Xero Marketplace.

A team that can price AND measure performance

It’s not often you’ll find someone who help you to price work and check that you’re getting the results you expect. We’re fortunate to have people within our team with that skill-set. It’s easy to take advise from a business consultant who won’t be around when the project doesn’t go as planned.

Our team draw on experience in various sectors in the UK, internationally, and very importantly, their own businesses. They’ll typically focus on high-quality management information informing effective decision-making.

We’re so confident that we can make a difference to your results by implementing effective job costing and pricing strategies that we enter profit improvement agreements with the right customers. If you’re feeling brave, and are ready to make some sensible changes, get in touch.

Ask about costing