Case Study 1
Building Stronger Profits with
Accurate Job Costing
Client Profile: A Leading Texas Construction Firm​
Industry: Residential & Light Commercial Construction
Location: Central Texas (e.g., Austin area)
Annual Revenue: Over $1.2 Million
The Challenge:
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As a rapidly growing custom home builder, this firm was juggling multiple projects simultaneously. They struggled with accurately tracking costs per job, leading to underestimated bids, unexpected budget overruns, and a lack of clear insight into true project profitability. Their manual tracking methods were consuming excessive owner time and creating financial blind spots.
The Challenge
This firm's rapid expansion meant more projects, but their financial tracking hadn't kept pace. They lacked a systematic way to assign all direct and indirect costs to specific jobs, leading to "profit fade" and uncertainty about which projects were truly successful. This made future bidding a guessing game and caused significant stress for the owner, who was spending evenings sifting through receipts.
Our Solution
Strategic Job Costing & Financial Tracking
Providence Bookkeeping & Tax Services partnered with this Texas construction firm to implement a robust, tailored job costing system by focusing on their key financial pillars:
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Empowering Their People: We worked directly with their project managers and administrative staff, providing practical training on consistent expense categorization and accurate time tracking directly linked to projects. We helped them understand why meticulous tracking mattered for their business's overall health.
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Optimizing Their Process: We helped streamline their expense submission and approval workflows, ensuring every cost – from lumber to subcontractor invoices – was quickly and accurately assigned to the correct job phase. We also implemented a weekly reporting schedule for key cost categories.
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Enhancing Their Program: We optimized their existing QuickBooks Online setup, configuring it to handle detailed job costing and generating custom reports that provided real-time breakdowns of income and expenses per project, moving them from guessing to knowing.
The Results &
KPI Impact
Within six months, this Texas construction firm transformed its financial control.
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Increased Project Profitability: By identifying and correcting hidden cost leaks, they saw an average 5% increase in Gross Profit Margin across new projects.
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Improved Bidding Accuracy: With reliable historical job cost data, their bids became significantly more precise, leading to a higher win rate on profitable projects.
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Time Savings: The owner saved an estimated 15-20 hours per month previously spent on manual financial reconciliation, freeing them to focus on client relationships and business development.
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Greater Financial Clarity: They now receive clear, actionable Project Profitability Reports, empowering them to make data-driven decisions that fuel their growth in the competitive Texas market.
