From Stress to Success: Cost Reporting Strategies

Episode #8

Picture this: you're the captain of your financial ship. Jacob unveils the magic of regularly monitoring costs, the compass to profitability, smoother cash flow, and business growth. Hold onto your calculators as he spills the beans on his toolkit, from sophisticated systems to trusty Excel hacks for cost tracking.

But here's the real gem: it's not just about numbers – it's about understanding your financial landscape, charting your course, and staying ahead of the game. Jacob's like your financial sherpa, guiding you through the peaks and valleys.

KEY TAKEAWAYS

  1. Cost reporting is essential for subcontractors to ensure profitability, improve cash flow, and grow their business.

  2. Regular cost reporting allows subcontractors to identify potential issues early on, such as unexpected increases in labor or material costs.

  3. By comparing the amount earned to the amount spent for each element of the work, subcontractors can determine if they are making money and adjust their pricing for future tenders.

  4. Cost reporting helps subcontractors monitor their cash flow and plan for upcoming expenses, such as purchasing expensive materials.

  5. Keeping cost reporting simple and finding the right frequency (e.g., monthly) allows subcontractors to identify deviations from the planned course and make necessary corrections to stay on track.

BEST MOMENTS

  1. "It's an enjoyable part of the month when things are going well, when things are going badly, it can be really, really stressful."

  2. "What you want to do is be able to monitor whether you're making money on items."

  3. "By doing it in this fashion, what we've done is identified an issue after just one month rather than letting it bumble on for a period of six nine months or whatever."

  4. "What you're seeing in this analysis is that the labor costs are a little bit higher than we were expecting, only marginally, but quite a lot more material costs have been incurred than what you would have earned and what the contractor is paying you for."

  5. "Hopefully I've shown you over the last 20 minutes or so how powerful that cost reporting can be and the benefits that you would get out of doing it on a regular basis."

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

www.linktr.ee/qs.zone

This show was brought to you by Progressive Media