Job Numbers, why use them?
So probably one of the easiest and first things we should talk about what will be the easiest things to incorporate into your business, is the use of job numbers. Typically as a small contractor, when you get a job, it might be the Smith’s house or George’s back porch or the name of a business like a fast food restaurant or whatever. You really need to start assigning job numbers.
And how that is, is you literally just pick a number. Start at 100, start at 1,000 whatever and you have the job number 1,000 and the description of whatever the job is. e.g., Smith house. Your next job that you are awarded will be 1001 and whatever the name of that job is.
Why this is important is it will allow you a way to easily track all of your costs on that job. Whenever you go to order material, put the job number on it. Whenever you place an order or pay anything out, assign it to the job number. That will allow you to cost the job so you can track all of your costs are for that job. Also, it makes it easy for paperwork, and it gives you an easy way to organize everything and allow you to find those jobs.
When we first started, we had no idea. For years and years we did things with the name of the job as we knew it. It will make your life a lot easier with whatever accounting software you use, be it Quickbooks, or be it in your head. We use Sage here at the office which is a bit bigger than most small companies will need. But understand that you need to assign a job number. Literally just pick a number, start at 1,000 if you need to, put in your first job and all of your information for that job will fall under job 1,000.
I believe here in the office we are at 50,000 numbers at this point. So as you go year to year, it gives you an easy way to see what you have done that year, how many jobs you have completed or are still working on. And just know that it is much better and easier to track everything than just the name of the job.