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Measuring profitability is crucial for business growth. Job costing in Housecall Pro makes it easier than ever to track and report on the costs associated with each job - giving you the power to make decisions that are right for your business.

Through a powerful suite of solutions, tracking expenses and profits for each job is simple.

Setting Up Job Costing

To start using job costing, navigate to the Job details settings page and click on the Job costing page.

From here, ensure the job costing toggle which will expose job costing calculations on your job is enabled.

Tracking Costs

To get the most out of job costing you'll want to track the following inputs on jobs:

Labor Costs

  • Time tracking - to track labor costs, make sure your employees are tracking their travel and time on jobs through our time tracking feature. You can toggle on this setting from the Job costing settings page.

Learn more about time tracking here.

  • Fully loaded rates - in order to calculate actual labor costs, employee pay details will need to be configured so that a fully loaded rate can be multiplied by the time on the job. A fully loaded amount includes the base hourly rate of an employee + additional costs associated with taxes and benefits.

    To setup fully loaded rates, select Setup from the job costing settings page next to Employee pay. From here, indicate which employees are hourly vs salaried and add their hourly rate or annual pay amounts. Then, use our fully loaded rate calculator to calculate fully loaded rates for each employee.

    You can also add your own fully loaded rate. The fully loaded rate will be used to calculate the true hourly cost of your employees.

    ℹ️ Note that all admins can see and edit labor rates, but office staff will need the "View and edit pay details" permission enabled to do so.

Once you have pay amounts and fully loaded rates assigned to your employees and they track their time on the jobs they're assigned to, their fully loaded rate will be multiplied by the time spent on the job (travel to and time on the job site) to calculate actual labor costs.

Material Costs

Materials costs are another important cost category to stay on top of. Having your pricebook built out with the common material you use will make it easier to track the material going into your jobs.

Learn more about setting up your pricebook here.

To track material costs, add material line items to your jobs and ensure the unit cost field, which is the cost of the material to you (not your customer) is filled out.

If you don't want your customers to see materials line items, simply hide them from the invoice settings.

Learn more about invoice settings here.

Miscellaneous Costs

Jobs may incur costs that don't fall into labor or materials, such as permits, parking, and rental fees to name a few. If you'd like to track these costs separately from line items you can enable the Miscellaneous cost tracking setting.

Once this setting is on, you'll be able to track miscellaneous costs on jobs from both the web and mobile apps. These costs won't impact the invoice or price of the job.

Commissions and Upsells

If you have a performance pay structure for your employees, you can turn on tracking for commissions costs which will enable you to assign commission rates to your employees.

Once you've turned on commissions and added commission rates, you'll be able to assign commissionable line items to employees on jobs. Commissions will be calculated by multiplying the commissionable amount of line items by the assigned employee's commission rate.

You can also track upsells on jobs by updating the 'Sold By' field on line items.

Services

You can use the unit cost field on service line items to track service costs as well, although tracking the actual costs of labor, materials, misc costs, and commissions will give you a more accurate breakdown of your job costs and margins.

Reporting on Job Costs and Profit Margins

As you track revenue and costs on your jobs, you'll be able to analyze your job costs and profit margins from the job details page and in job reports.

The following metrics are available by expanding the Job Costing Breakdown section on the job details page.

  • Profit Margin = gross profit/revenue

  • Total Revenue = the job subtotal minus any discounts

  • Total Job Costs = labor costs (travel + time on job x fully loaded rate of any assigned employees) + material costs + commissions costs + miscellaneous costs + service costs

  • Total Gross Profit = revenue - job costs

Note: taxes and tips are excluded in all of the above metrics

A job costing summary is also available on jobs on the mobile app by default for admins and office staff.

Aggregate job costing reporting is also available on the jobs tabs in reporting. To view the aggregate reports, navigate to Reporting > Jobs. For details on the job costing reports, reference the Job costing reporting article.

Permissions

Admins and office staff will be able to see job costing information on each job by default. If you'd like your field techs to see job costing details on their jobs you can turn on the ‘See job costing margins and inputs’ permission from the employee details page. You can also turn off this same permission for your office staff.

Learn more about permissions.

Estimates

When job costing is on, you'll also be able to track basic unit costs on service and material line items along with the expected profit margin on estimates.

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