Posted 3 years ago - by

Why Software for Job Costing Payroll Is Good for Profitability

Job costing done right is how you fulfill one of the purposes of your business: financial gain. Your employees are your company’s largest expense, yet many businesses are not tracking exactly where these expenses should be allocated. In the age of automation, it also involves upgrading your job costing system, preferably involving a job costing payroll software. Here are the reasons why:

1. Improved cost control

Using an automated payroll software with built in job costing prevents things (from minor expenses to a few additional materials) from slipping through the cracks. It allows you to stay on top of your business costs through full-coverage expense monitoring. Accurate knowledge of your expenses means you are able to better track your profitability across your business activities.

2. Reduced risk for errors

2. Reduced risk for errors

By replacing manual job costing, automated job costing integrated into a payroll software significantly decreases the risk for errors, effectively eliminating the possibility of human calculation errors. However, automation shouldn’t be a cause for human complacency: it can only be as accurate as the information fed into the software.

3. Enabled performance benchmarks

With an integrated job costing payroll software, you can get access to detailed information on every team member working on a project or operation, enabling you to evaluate individual performance data in terms of such indicators as productivity, efficiency, cost control, attendance, etc. From here it’s easy to identify the employees who fail to meet performance expectations and those who can be relied on more for serious responsibilities that help ensure your business continues running smoothly.

4. Increased chance of profitability

4. Increased chance of profitability

The scope of job costing actually extends beyond simply monitoring paid time and factors in health insurance, travel time, and even recruitment and training costs—all the more reason why automation that accommodates scaling should be adopted. Regardless of the structure of your organization, an automated system allows you to track your customers, jobs, services, or products, among others, in order to accurately calculate your profit margins and get a clear picture of your overall profitability.

5. Options to scale

Job costing payroll software powered by the latest technology means scalability (e.g., modifying equations, schedules, etc.). You can make adjustments with ease to optimize functionality to suit your specific business requirements.

Make the smart call and upgrade from manual cost journaling to a payroll software that integrates job costing to ensure accurate calculations and reporting. Learn more about how you can increase the profitability of your business with Payroll Systems’ job costing payroll service—which can be scaled to fit your organizational structure and specific needs and is backed up by a dedicated specialist to work with you to make sure that everything works as you want it to.

Payroll Systems, LLC.

www.payroll-us.com | info@payroll-us.com

800-696-8004

 

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.