Job Costing Management and Expense Tracking: A Small Business’s Best Friends
If you were to track the number of small businesses that spring up on a daily basis, you’d need a separate timesheet for the task. According to statistics, a large number of businesses are registered every year however not many survived for longer period. Between 2009 and 2016, some 400,000 new small businesses were being established on a yearly basis. While 80% of the businesses made it breezily through their first years, they began having problems as subsequent years rolled in. Only 70% make it through the second year, and 50% remain functioning once 5 years have passed.
The reason behind this falling out is simple enough to understand: when a small business starts, well-stocked and financed, it’s only starting out. However, as the funds begin to dwindle and the business begins relying on its own profits, the hard realities come knocking on your corporate doors.
And that’s where expense tracking and job costing management software comes in. They help you continue on the right path, keeping you tethered to projects and profits for success and growth in the long run.
The Need for Management Software
When you’re in a business, you’re working with numbers, and are faced with making decisions that are purely data-driven. Data, then, needs to be collected—but the task goes beyond accounting and units in economics. You need to deconstruct your business model to its smallest, indivisible unit—the employees—and calculate the costs from that point on. You need to know whether the task you’re spending funds on is worth funding.
One of the biggest decisions a businessman needs to make is concerned with the costs of various jobs—or services. What are you spending on providing a certain service? Based on this cost, are you charging your clients the right price? Are you making enough to achieve the profit margin you’ve set as your target?
In the case of a service-based business (as compared to a product-based business) it’s the work your employees are doing that’s the product. You therefore need to evaluate:
- Real-time performance
Hailing an Online Expense Tracking Software
The best way to go about the task is to consolidate your expenses and time records in one place. This platform should also include the approval statuses, for a clear understanding of the situation. By having a software do the tracking for you, you’ll never miss out on pending approvals, will never have a problem keeping track of the expenses, and will have a smoother time running the project finances.
As a manager, you’ll have complete insight and a bird’s eye view of the project, the finances, and the future decisions that need to be taking. Timebeans is an online time and expense tracking software that lets you record and keep track of your expenses. You’ll have your on-going projects sorted out with ease, and will have a hassle-free billing experience. To get in touch with Timebeans, give them a call at +1 214 329 9086.