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Practical Financial Advice for Oklahoma Contractors
Actionable tips, insights, and strategies to help tradespeople stabilize cash flow, grow profits, and plan for success.
Running a contracting business comes with unique challenges—seasonal cash flow, messy books, and figuring out which jobs are the most profitable, just to name a few. That’s why we created this blog: to help Oklahoma’s HVAC companies, plumbers, and electricians tackle these challenges head-on with expert advice and practical solutions.
Whether you’re looking for tips to clean up your books, strategies to plan for growth, or ways to manage payroll without stress, you’ll find it all here."
Never Lose Money on a Job Again: Job Costing 101 for Plumbers, Electricians, and HVAC Techs
Never Lose Money on a Job Again: Job Costing 101 for Plumbers, Electricians, and HVAC Techs
Introduction
Have you ever finished a job and wondered if you actually made money? For many contractors—whether you’re a plumber, electrician, or HVAC technician—job costing can feel like a mystery. But mastering this skill is essential to running a profitable business.
In this guide, we’ll break down the basics of job costing and show you how to ensure every project adds to your bottom line.
What Is Job Costing?
Job costing is a way to track all the expenses for a specific project, including labor, materials, and overhead. By comparing these costs to your revenue, you can determine if a job is profitable—and if not, figure out why.
The Key Components of Job Costing
Labor Costs:
Track the hours your team works on a job and assign an hourly rate (including taxes and benefits).
Pro Tip: Use time-tracking software to keep this simple.
Material Costs:
Include all materials purchased for the job, plus delivery fees or wasted materials.
Pro Tip: Keep receipts and use software to categorize expenses automatically.
Overhead Costs:
Divide your monthly overhead (office rent, utilities, insurance) by the number of jobs you complete to estimate overhead per project.
How to Calculate Job Profitability
Add up your total job costs (labor + materials + overhead).
Subtract these costs from your revenue for the project.
Analyze the profit margin.
If your profit margins are consistently low, it’s time to adjust your pricing or cut unnecessary costs.
Common Job Costing Mistakes
Failing to include hidden costs (like delivery fees or equipment maintenance).
Guessing instead of tracking real-time expenses.
Not reviewing profitability regularly.
Avoid these pitfalls by implementing a system that tracks all costs accurately.
Conclusion
Job costing isn’t just a financial exercise—it’s the key to ensuring your business stays profitable. By mastering this process, you can take control of your finances and never lose money on a job again.
Ready to simplify your job costing?
Schedule a free consultation today, and we’ll help you set up a system that works.
Looking for More Personalized Advice?
Our blog is just the beginning. If you’re ready to take your finances to the next level, schedule a free consultation today. Let’s build a plan that works for your business.
We Understand the Trades—and We Know the Numbers.
What sets us apart? We’re more than just number crunchers. We’re your financial partners, committed to helping you build a business you’re proud of. Here’s what you can count on when you work with us:
Local Expertise
We specialize in helping Oklahoma contractors and tradespeople, including HVAC companies, plumbers, and electricians.
Tailored Solutions
We don’t do cookie-cutter advice—everything we offer is customized to your business
Proven Results
Our clients have stabilized cash flow, increased profits, and grown their businesses.
Shared Values
We believe in hard work, teamwork, and taking care of your people—just like you do.
