3 Conventions for Successfully Managing a Job
Construction companies use many ways to track the cost and progress of projects, including job codes, cost codes, and work breakdown structures (WBS).
• Companies use job codes to categorize and track the cost of specific tasks within a construction project.
• On the other hand, cost codes track the costs of materials, labor, and equipment.
• Lastly, work breakdown structures (WBS) track the scope.
Each system fulfills a business need for stakeholders:
The Identifier: Job Codes
Job codes act as unique identifiers assigned to specific jobs or projects; they perform multiple purposes, including tracking employee time and attendance, budgeting, and forecasting.
The Banker: Cost Codes
Accounting and finance staff use cost codes to track and manage costs. These alphanumeric codes correspond to a specific expense or expense category. This system helps track budgeted amounts, actual costs, and remaining budgeted amounts. Additionally, cost codes can help identify areas for saving money on a project.
Job Cost Codes and the GL
Job cost codes usually link to an account in the general ledger. When a business records a financial transaction, its ledger entry includes the job cost code, the transaction amount, and which account it impacts.
The Organizer: Work Breakdown Structures (WBS)
A work breakdown structure (WBS) identifies a deliverable-oriented group of project tasks. This system provides a framework for breaking down a project into smaller, more manageable parts. The WBS also prioritizes the project's significant deliverables and estimates the time required to complete each task. Project administrators can also create project schedules, enabling them to assign tasks to team members. They can track progress and identify potential problems early.
How Do Job Codes and Work Breakdown Structures Differ?
Job codes identify specific jobs, while work breakdown structures break down larger tasks into manageable chunks. Job codes usually use alphanumeric syntax, while work breakdown structures use a numbering system to identify the different parts of a task. Job codes track employee hours and wages, while work breakdown structures serve other purposes, such as planning and scheduling.
hh2 and Construction Codes
Because hh2 was created from the ground up for construction — proper construction coding exists in the software's DNA.
With hh2 Remote Payroll, you can log, code, and move labor hours into your accounting system. Additionally, you can send entries through custom approval paths with as many approval levels as needed. Coded time routes to stakeholders, enabling them to review and either approve or reject billable hours.
hh2 Document Flow scans and codes credit card receipts right at the point of purchase, then automatically converts hardcopies into searchable data. hh2 syncs seamlessly with your construction accounting system, and fully coded receipts flow directly into your database.
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