Job costing bookkeeping in Halifax

Define the cost record before using the margin

We agree how labour, parts, subcontractors and direct travel are assigned to work. Stock purchases are distinguished from parts actually issued to a job. Approved changes and proposals awaiting acceptance remain separate in the revenue schedule.

The report also distinguishes costs already incurred, unincurred commitments and other expected costs to finish. Each amount belongs in only one category so the forecast does not count an outstanding purchase twice.

A marine-service example

A hypothetical Halifax service order has $24,000 of approved revenue and $15,500 of direct costs incurred. Another $3,200 is committed but not yet incurred, with $1,300 of additional costs expected. Forecast direct cost is $20,000, leaving $4,000 contribution before overhead and financing.

Connect job performance with the cash plan

The invoicing and collection schedule shows when costs must be funded and when customer payments are expected. A positive contribution does not guarantee enough cash during the work. Contractual holdbacks and approval conditions retain their actual terms rather than an assumed universal percentage.

At completion, we reconcile supplier credits, final costs and customer changes. The record becomes useful evidence for future pricing and operational review. Legal payment rights and specialized tax classifications remain separate questions, supported by the documents rather than determined by the margin worksheet.

Questions about this work

Put this into practice

• Marine businesses →
• Progress-billing guide →
• Planning tools →