Job costing basics for small contractors
You cannot improve what you do not measure. Start with three numbers per job.
- Track labor hours. Record actual hours per job, including drive time.
- Track materials. Keep receipts tied to the job they were bought for.
- Add an overhead share. Spread vehicle, insurance, software and office costs across your jobs.
- Compare to the price charged. Subtract total cost from the invoice to see the real margin.
- Review by job type. Look for patterns across similar work and adjust your pricing.
Common questions
What is a good margin?
It depends on your trade and costs. Ask your accountant for a target.
Can a spreadsheet do this?
Yes, to start. Consistency matters more than the tool.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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