Enhancing Precision in Job Costing: Part 1

Reviewing Performance on Your Spring Clean-Up

As the vibrant colors of spring give way to summer, it’s time to reflect on the performance of your spring clean-up projects. Accurate job costing is essential for landscaping businesses, and reviewing your spring clean-up efforts is a critical first step in understanding your business’s financial health and operational efficiency.

Get Curious with Your Team

Engage in conversations with your management, production manager, and field team members. Asking detailed questions and involving various perspectives can uncover crucial insights that might be missed. Here are some essential areas to explore:

• Successes and Areas for Improvement: What aspects of the spring clean-up went well? Were there any unexpected challenges? Identifying both successes and areas for improvement helps you understand what strategies and practices to continue and which to modify.
• Budget Analysis: Were there jobs that were under or over budget? Analyzing why these deviations occurred is vital. For instance, a new property might require more work than anticipated due to unfamiliar terrain or specific client requests. On the other hand, a new crew might need help with property boundaries, leading to inefficiencies.
• Job Costing Accuracy: Did you under-budget or over-budget the job? Accurate job costing is foundational for maintaining profitability. Under-budgeting can lead to unexpected costs while over-budgeting might make your services less competitive.
• Field and Production Notes: Utilizing BOSS’s capability to add production notes and allowing workers to report issues from the field can streamline this process. Real-time internal notifications ensure that everyone is on the same page and that problems are addressed promptly.

Evaluating Job Performance Metrics

When evaluating jobs that are over or under budget, it’s essential to look at both the percentage of deviation and the actual number of hours. This dual approach gives a more comprehensive picture:

• Percentage Analysis: Looking at budget variances as a percentage can help identify trends across different jobs. For example, if several jobs consistently go 20% over budget, this could indicate a systemic issue with your budgeting process.
• Hours Analysis: Examining the number of hours helps understand the practical impact on your labor force. A job that goes 5 hours over budget might be manageable, but multiple jobs going 50 hours over budget could severely strain your resources.

Leveraging Technology for Data Collection

Collecting performance data is crucial for informed decision-making. Depending on your resources and preferences, this can be done manually, through software, or a combination of both:

• Manual Data Collection: While labor-intensive, this method provides a highly personalized touch. Field team members can provide qualitative insights that might not be captured through software alone.
• Software Solutions: BOSS software provides real-time data collection, offering a seamless and efficient way to gather and analyze performance data. The BOSS BI Dashboard allows for customizable data views, enabling you to focus on the metrics most relevant to your business.

Review Frequency

How often should you review performance data? Regular reviews help maintain a high standard of service and quickly address any issues. Consider the following review intervals:

• Daily Reviews: Daily check-ins can help catch issues before they escalate, ensuring that each day’s work aligns with your expectations and budget.
• Weekly Reviews: Weekly reviews allow for a broader perspective, identifying trends and patterns that might not be evident in daily reviews.
• Monthly Reviews: Monthly reviews are ideal for strategic planning and longer-term adjustments. They allow you to reflect on broader trends and make necessary process changes.
• Post-Service Reviews: Reviewing performance data after each service is completed ensures a thorough analysis of the entire job from start to finish.

By thoroughly reviewing your spring clean-up performance and leveraging the capabilities of BOSS software, you can significantly enhance the precision of your job costing. This approach helps you understand your business’s current performance and sets the foundation for continuous improvement and long-term success.