💰 JobTread Job Costing

HOW TO TRACK PROFITABILITY
IN JOBTREAD

By Better Boss · Certified JobTread Implementation Partner · 5 min read

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Most contractors know they're making money — they just don't know how much, or on which jobs. Without real job costing data, you can't price confidently, you can't identify your most profitable services, and you can't catch margin bleed before it becomes a problem.

WHY MOST CONTRACTORS DON'T TRACK THIS

The average contractor not tracking job costing is under-priced on 30–40% of their jobs without knowing it. They're so focused on keeping the calendar full that they never ask: "Which of these jobs actually made us money?"

THE 5 KPIS TO TRACK IN JOBTREAD

30–45%Target Gross Margin

5%Max Variance Alert

3+Metrics Tracked / Job

Gross Margin %Revenue minus direct job costs, divided by revenue. Target: 30–45% for most residential contractors.

Close Rate by SourceProposals sent vs. accepted, filtered by lead source and service type.

Average Job ValueTotal revenue divided by number of jobs. Rising average = your Good/Better/Best strategy is working.

Actual vs. Estimated CostThe core of job costing. Any job over 5% variance gets reviewed.

Labor Cost %Labor as % of job revenue. If this creeps up, you have a productivity or pricing problem.

HOW TO SET UP JOB COSTING IN JOBTREAD

Step 1: Set Up Cost Codes

Cost codes categorize your expenses: Labor, Materials, Subcontractors, Equipment, Overhead. Consistent cost codes make reporting meaningful — without them, you can't compare jobs apples-to-apples.

Step 2: Enter Estimated Costs in Every Estimate

Every line item in your estimate needs a cost attached, not just a price. This sets your "estimated" baseline for the job costing comparison.

Step 3: Log Actual Costs as They Happen

Log actual material purchases, subcontractor invoices, and labor hours against the job in real time. This can be done manually or automatically via QuickBooks integration.

Step 4: Review Job Costing Reports Monthly

Run the estimated vs. actual report at job completion and monthly across all jobs. Spot which project types have the most cost bleed and which crews are most efficient.

💡 The Result: 6–12 months of real job costing data means you know exactly what each service costs to deliver. Price with confidence. Stop leaving money on the table.

WE BUILD YOUR JOB COSTING SYSTEM FROM DAY ONE

Every Better Boss implementation includes full job costing setup — cost codes, dashboard reporting, and team training so your team actually uses it.