What is job costing?

An often overlooked but potentially money-saving activity, job costing is the calculation of the "total cost of a given unit by adding together all material and labor costs, both direct and indirect, that are involved in manufacturing." Essentially, job costing will pinpoint where you are losing and making money within a business' processes and in doing so will highlight any unnecessary expenses.

So why is it so important?

As Gene Marks explains for Hiscox, once you make those calculations, "Some jobs that you thought were making money didn't make as much.  Other jobs may have been more profitable than you estimated.  And many probably came in line with what you expected." Now, says Marks, you can adjust your company's operations accordingly and decide which jobs you should and shouldn't keep on board. This knowledge can also give you an edge in future negotiations with vendors.

The benefits of this are evident, but the process itself can be time consuming, which is why it is crucial for your ERP software to have job costing as an integral part of its core functions. Microsoft Dynamics NAV does perform job costing, and does so automatically to give you more time to focus on your business. 

Should your Indiana, Ohio or Kentucky manufacturing company require aid in the implementation and customization of manufacturing ERP software, get in touch with us at Accent Software. We have over a decade of experience with industry leader Microsoft Dynamics NAV and will be able to train your employees in the management of the program as well as provide troubleshooting should you need it after the initial installation.