Job Costing for Freelancers & Small Business

1. Making more MONEY with
Job Costing!
Samantha L. McCoy

2. First a short story……..well, two short stories.

3. Key Concept # 1- Profitability

4. What is Profitability?

5. Do you evaluate the profitability of each project once it is
completed?

6. Evaluating your profitability on each project is the only way to
determine two important business health checks…….
1. Are you pricing your projects correctly?
2. Are you accounting for all of your costs appropriately?

7. Key Concept # 2- Using Job Costing to
determine Profitability with Project Costs

8. What is Job Costing?
A method used to record costs on a specific project.
Generally used in situations where each project is
different and is performed to the customer's specification.

9. Job Costing Example # 1
** Hourly Rate Assumption or Overhead Burden**

10. Job Costing Example # 2

11. Job Costing Example # 2A

12. Job Costing Example # 2B

13. Key Concept # 3- Job Costing to a Real
Hourly Rate

14. What expenses do you include in your Hourly (Burden) Rate?

15. How do you calculate your expenses to include in your Hourly
(Burden) Rate?
Take the Monthly Expense Cost / by your average monthly hours
Example: Phone/ Cable/ Internet $250.00/120 hours = $2.08 an hour

16. Job Costing to an Hourly Rate: Example # 1
Job
Costing

17. Job Costing to an Hourly Rate: Example # 2

18. Summary:
1. Always Review Profitability on Your Jobs
2. Job Cost all Project Specific Costs
3. Job Cost Your Overhead Rate

19. Questions ???