Question 1

What is the difference between job costing and estimating?

Accepted Answer

Estimating predicts a cost before the work. Job costing measures it afterwards. The value is in comparing the two: a consistent gap between estimated and actual tells you your rates or your assumptions need adjusting.

Question 2

Should travel time be included in job costing?

Accepted Answer

Yes, if you want a true picture. Travel is paid time and fuel, and on short-call work it can be a large share of the day. Leaving it out systematically overstates the margin on your smallest jobs, which are usually the ones worth reviewing.

Question 3

How often should I review job costs?

Accepted Answer

Monthly is enough for most service businesses, looking at margin by job type and by client rather than job by job. The pattern is what you act on. Individual jobs vary for reasons that are not worth chasing.