The Easiest and Most Efficient Way for Specialty Trade Contractors to Track Job Costs and Profitability

For specialty trade contractors in the construction industry, tracking inventory, costs, income, and expenses by job is essential for staying profitable and growing your business. But with so many moving parts—labor, materials, equipment, subcontractors—it can be overwhelming to keep tabs on everything. The good news? There are powerful, easy-to-use tools that make job costing and project profitability reporting seamless. Here’s how to simplify your operations and boost your bottom line.

1. Use Job Costing Construction Accounting Software

The most effective way to manage all financial aspects of a job is by using accounting software designed for job costing. These platforms let you assign every dollar—from labor and materials to subcontractor expenses—to the correct project.

Recommended Tools:

QuickBooks Online + Project Management Add-ons

Built-in Projects feature for tracking job income/expenses
Works with add-ons like Knowify, Buildertrend, and CoConstruct for job management

QuickBooks Desktop Premier Contractor Edition

Advanced job costing features out of the box
Tracks estimates vs. actuals, job phases, and cost codes

Knowify

Designed for subcontractors and specialty trades
Tracks time, materials, change orders, and profitability
Integrates seamlessly with QuickBooks Online

Jobber

Ideal for smaller or service-based contractors
Simplified job costing and easy scheduling

Buildertrend / CoConstruct

Great for larger, more complex projects
Handles budgets, change orders, and subcontractor costs
Includes client communication tools

2. Track Inventory & Material Costs

Materials can make or break a job's profitability. Use your accounting software’s Items list (in QuickBooks) or inventory features to assign costs directly to jobs. Many tools let you attach purchase orders and receipts right to a job, ensuring nothing slips through the cracks.

For reusable tools or equipment, track usage via internal charges or estimated depreciation assigned per project.

3. Capture Labor Costs Accurately

Labor is often your biggest expense. Accurate time tracking ensures you're billing clients correctly and understanding job profitability. Use tools like:

QuickBooks Time
ClockShark
Knowify Time Tracking

These allow workers to log hours by job or task, and you can include payroll taxes and benefits for true labor cost visibility.

4. Generate Project Profitability Reports

Once your costs are tracked by job, your software can generate real-time reports showing:

Estimated vs. Actual Costs
Gross Profit per Job
Over/Under Billing
Work in Progress (WIP) Reports

This insight helps you bid smarter, reduce overruns, and plan for future growth.

Sample Workflow: QuickBooks Online + Knowify

Set up a new job in Knowify (linked to QuickBooks).
Create estimates for labor, materials, and subs.
Issue POs and record bills, assigning them to the job.
Track employee time directly to the job.
Invoice your customer based on progress.
View live profitability dashboards and reports.

Final Thoughts

The key to managing costs and increasing profits in specialty contracting is clear job costing and accurate reporting. With the right software setup—like QuickBooks and Knowify—you can streamline your operations, eliminate guesswork, and make confident, data-driven decisions.

Need help choosing the best setup for your trade? Reach out and let’s talk tools, workflows, and how to tailor a system that fits your business.