Job Cost Accounting also known as Project Account is a software program that creates reports on the finances to aid in tracking the financial development of the project.
In most cases, this type of software is standard accounting and is used mainly for monitoring the various functional departments, geographical departments, division, and the entire project over specific periods of time such as years, quarters, months, or weeks.
Every project is different due to many of them often cross organizing boundaries which can last for only a few days up to several years. In some cases, due to the deadline of the project the cost may have to be changed over the time period of the project. In other cases, the company may be working on several projects that create the larger project.
Job Cost Accounting software will not only show revenues, but can also place the funds to different areas of each project allowing the budget to be broken down into a specific structure or even placed all together. This software will allow for reports during any level that it has been instructed which gives a history of funds along with the budgets that are current.
Government contractors often use project accounting as it gives them the ability to provide the costs by contract, which is normally one of the requirements in order to receive interim payments.
Project managers normally use software that provides them access to the percentage of completion. This report will include income that relates to projects that are longer and recognition of revenues constantly. This allows the seller to notice loss or gain to a project during the entire project. The software calculates the actual to budget cost differences by changing the percent of completion.
In most projects, the cost of labor is a huge portion of the project cost so it is important to keep up with the time sheets of employees to create the data needed to assign the costs of projects.