The calculation is as follows:
Job Profitability = Job Profit / Job Revenue
What if I don’t have all the data?
At Moose Creek, we are asked that all the time. If you are reading this, you likely have a successful business and are ready to take the next step into the world of accounting, congratulations! Does that sound a little scary as well? We realize that our clients specialize in all aspects of craft, skill, and engaging with the community (sales!), but accounting is often their least favorite part of being a business owner. (Not everyone LOVES math like we do.) Job Costing is the first step to creating accurate reports, including Job Profitability. Moose Creek Bookkeeping specializes in service-based accounting and is eager to help you start tracking all your job costs properly so that you are ready to run more accurate reports as your business grows. Once that is done, running reports for Job Profitability and other highly-detailed reports can happen easily! That way, you are able to focus on your craft, sales, and your most profitable clients.