Chronoblog
Category: Job Budgets
Are Your Numbers As Good As You Think?

Job Cost Reports

I beat my son on Wii Golf the other day 40-47 on 9 holes. At first glance, one might think that my son is awful, while I am the next Rory McIlroy. The numbers are convincing. On average I beat him by a stroke on almost every hole. I could market this version of the truth and sell it to a naïve buyer. But let’s dig deeper before we make the purchase. How did we compete on a hole by hole basis? Ah… a different story comes to light. I only beat him on 5 holes. He beat me on 4. It was a tight match until the last hole and he was ahead going into it. The 9th hole was a train wreck for him. As a small business owner, you may ask yourself the question, are your numbers as good as you think? This question may create some uneasiness if you don’t have good job cost reports.

Some small business owners may look at the end of the week numbers and think that life is good. They made payroll, paid all of the bills, and there’s money left over for groceries. Time to uncork the champagne, right? What if you could dive deeper into the numbers? Let’s say that you have 10 customers and you could easily run the numbers for each one. The analysis reveals that you’re losing money on 5 customers, breaking even on 2, and only 3 are profitable. These 3 customers are profitable enough to bring your total bottom line into the black, which disguises your problem with the 7. But in-depth job by job cost reports aren’t easy to get – unless you use our online employee time clock for labor hours.

Our time clock app and employee call in system allows your employees to clock in and out of different jobs. You get accurate hours for payroll, and for job cost reports. The Weekly Labor Cost report is a job cost report that breaks down total weekly hours by job, and then by employee. See how many weekly hours were worked at each of your 10 customers compared to their budgeted hours. The report also shows the labor dollars spent at each job site. Compare the dollars spent against the dollars budgeted for each job. And because this is a WEEKLY job cost report, you catch any issues quickly. The report shows if any employees hit overtime on these jobs. Not just overtime, but on which job and how many overtime hours on each job. This is extremely valuable information. Overtime hours cost you at least 1.5 times more at these jobs. Just shift your employees around to avoid overtime next week.

One final golden nugget is that the Weekly Labor Cost report allows you to enter a labor rate multiplier to get a REAL labor cost for each job. You may pay $9 an hour, but that’s not your total cost. Add in 7.65% for your share of the payroll taxes and maybe 2% for worker’s comp, and that $9 an hour employee is really $9.87 per hour. If you neglect to factor in these numbers, you will be about 10% off across the board.

Our Weekly Labor Cost report eliminates the uneasy feeling that guesswork causes and gives you enlightened, true numbers that help you understand your small business better. This job cost report provides targeted, real data that is broken down and helps you devise a plan of attack for the rest of the month. If you need a clearer grip on the “real” truth about your business that accurate job cost reports can provide, sign up for a free trial with us.

Legendary golfer Ben Hogan said, “The most important shot in golf is the next one.” This may be true of your next business decision, also.

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So Close – Real Solutions to Your Business Problems

remote employee time clock Finding real solutions to your business problems can be like raising teenagers.

You walk into the kitchen and on top of the counter sits a stack of used paper towels,  paper plates and food wrappers. Right there just about 12 inches above the waste basket. So close to doing the right thing!

Or you pass by the laundry room and see an assortment of your teenager’s dirty clothes littering the floor at the base of the empty laundry basket. So close to doing the right thing again!

Now that’s our teenage children around the house.  What about you, the small business owner with remote hourly employees?  You found this blog because you did an internet search for a solution to one of your business problems. Maybe you’re sick and tired of employee handwritten timesheets.  You beg employees to turn them in and when they do, they are half-completed or illegible.  And worse yet, you just don’t trust them and the padded hours are a drag on your bottom line.   Or maybe you’ve had jobs missed because of employee no-shows.  Maybe you are here for an easier way to monitor and control overtime. Or you lost money on a couple of customers because the labor hours got off-kilter and you need a live, automated way to track job hours. Is it that your method to handle employee paid travel time and mileage involves late nights, expresso shots, interpreting handwritten scribbles and verifying every travel trip manually with a mapping program?

You are so close to a solution if you are here for any of these reasons. Chronotek has a remote employee time clock that solves all of these problems.  Employees clock in, clock out with a tap of the app or make a phone call.

This simple act of punching in and out of our remote employee time clock (or not punching in) is live, actionable information we can deliver to you when you need it:  no-show text alerts; overtime and weekly labor cost reports; dynamic, up-to-the minute job budget tools; automated travel and mileage reports and most assuredly, accurate employee time cards.

Teenagers may never hit the mark , but you are so close to doing the right thing for your small business.   You are so close to real solutions to your business problems. So why not try our remote employee time clock risk free and cost free for 30 days? Go ahead and click the link. You’ve made it this far!

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Managing Remote Employees: Automated Job Budgets

Spreadsheets are powerful, but lifeless. A spreadsheet can have fabulous pivot tables, line charts and colored graphs to provide vital information as long as human hands are entering the data…and keep entering the data.  The information spreadsheets provide to assist with business decisions is only good if the data is current.  For a small business owner with hourly employees who use handwritten timesheets, maintaining job budgets on a spreadsheet is nearly impossible.  Yet it’s worse for a company whose only mode for tracking success or failure is whether or not he has any money left in the bank at the end of the month.   There’s a better way to monitor hours worked at jobs than tedious drudgery or sheer luck.

In this third installment of our Managing Remote Employees series we would like to suggest the best business practice on tracking job budgets.  It begins with using a phone and app-based timekeeping solution that automates the employee time collection process.  Employees need a simple way to clock in and out whether it is with a phone call or by using the app.  With either method, automated time cards are created by the system to bring life to the data evaluation process.

With our timekeeping solution, the best method to track actual job site hours worked is with our Budget Manager.  It provides a small business owner with vital up-to-date information on worked hours compared to the budget numbers.  Of course, too many employee hours could indicate several things: the job was underestimated, employees are padding their time cards, or they are working too slow.  But too few hours might mean that employees aren’t spending enough time on the job and the quality is poor.  Either way, a small business owner needs help.  She needs current information to make important management decisions.

For each job, create a budget for the contracted hours.  Then without any more effort, our timekeeping solution will crunch the numbers and quickly report actual hours versus budgeted hours for each job.  Create  job budgets for the entire year and then monitor the hours by week or month.  Know in dynamic, digital color-coded clarity via the Budget Dashboard if your budgets are on track, where they are headed, and if necessary make on-the-spot future scheduling changes to bring the budget back in line.  No need to wait to enter the daily timecard data into a spreadsheet to know how your jobs are doing.  The Budget Manager information is automated, live and predictive.

Breathe life into your management processes. Each morning instead of stretching your hands to do a morning full of data entry, simply log into your dynamic Budget Dashboard and welcome the new day with the current information you need to make the decisions when they need to be made. That is the power of using budgets in an automated phone and app-based timekeeping system.

Please check back with us for our next installment of Managing Remote Employees when we give smart tips on how to prepare for payroll.  Or make it easy on yourself to stay updated by subscribing to this blog and following us on Twitter.

 

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