Q:
As a road contractor, I need to get a better handle on productivity at our jobsites. Everything we do is measured in linear feet, but when we try to figure out how many feet we can do per man hour, it takes hours upon hours of manual calculation. I also worry that the information is not accurate. There has got to be a better way! Any suggestions?
Jim
A:
There is a better way... and it is called job cost accounting software. With an integrated accounting package, you don't need to waste time collecting job cost data for production reporting because this data is already in the system. (Labor costs are updated with every payroll run, material costs are updated with every invoice paid, and so on.) All you need to do is enter or import quantities completed to receive instant and accurate production reporting.
Production reports actually provide several advantages. Not only do they help you understand how your jobs are progressing, but you'll also gain access to:
- realistic projected costs based on accurate production rates
- historical data, which leads to more precise estimating and perhaps more competitive bidding.
As you have stated, trying to get detailed production reporting from a generic or outdated accounting system is no picnic. In fact, the time and money spent trying to gather this information is probably not worth the cost you will save by having more accurate information. If precise, detailed information is what you need, and job costing is important to you, then your best bet is to consider an integrated job-cost accounting program. Good luck to you.
Fred
Construction Business Owner, October 2008
