At the end of the fiscal year, too many business managers and owners are left wondering where the cash went. Tracking expenses is always a forward-looking priority and goal, but one that is difficult to accomplish when it’s nickels and dimes that may be eating the company budget. Cost-codes are the secret weapon that more construction companies are turning to every day.
While there is no sure-fire method to itemize where every penny is spent, new technologies can assist businesses with meeting budgets and uncovering inefficient and wasteful expenditures. Finally, there is a way to itemize expenses on the fly — from labor costs to equipment and resources allocation. For businesses that operate remotely, or with many employees spread across a range of jobsites, a personal digital accountant is indispensable.
Jobsite data can be used to track, project, and finalize costs for any job, regardless of size. Streamlining expenditures begins with finding out where the money is being used. When companies incorporate baseline data and the ability to track expenses, balancing the end-of-year budget — and creating the next year’s — is easier and more reliable.
Cost-Codes to Separate Labor and Equipment Costs
Data collection begins with categorizing expenses, including common budget items like labor and equipment costs. When every employee participates in the data collection process with reliable technology, businesses can create a more accurate picture of where the money goes.
Daily, weekly, and monthly expense tracking and cost allocation lead to complete annual budget figures. Adjusting projections based on incremental cost reporting helps save money, increase profits, and adds to customer satisfaction. Receiving accurate estimates and bills for contractor services ranks among the top consumer concerns in satisfaction surveys.
Using cost codes allows contractors, service companies, and other businesses to track data for:
employee activity
equipment usage
individual projects and subproject
By categorizing expenditures in real time, every project supervisor, manager, and business owner can observe how efficiently the company is functioning.
Effective and Easy-to-Use Technology
When construction companies and service contractors operate across a range of remote jobsites, it is both impractical and impossible to send one employee to every site to monitor expenses. An on-site supervisor can track budgets, but may be too occupied with more important details that preclude a notation each time a certain piece of equipment is used, or where each employee is working at a specific time.
However, when employees are actively engaged in the data collection process, companies can compile larger amounts of accurate data without interruption or distraction for productive duties. The busybusy app is user-friendly and easy to use. When each job, activity, employee, and piece of equipment has been assigned a cost-code, the app automatically tracks expenses when employees log changes during the day.
For companies that pride themselves on teamwork for success, there is no better way to achieve cost-cutting, increased profits, and growth than by involving every member of the team. Find out more about how busybusy can help service companies and contractors streamline data collection with high-tech data tracking.
