# Job Costing: Tracking Cost to Each Job
**Job costing** assigns every dollar of cost to a specific job (and often a **cost code** within it). It's the heart of construction accounting.
## What you track per job
- **Labor** (with burden — taxes, benefits, comp)
- **Materials**
- **Equipment**
- **Subcontractors**
- **Other** (permits, rentals)
## Why it matters
- **Estimate vs. actual** — compare what you bid to what it's costing, in real time, so you catch overruns early.
- **Profitability** — you learn which job types and which crews actually make money.
- **Better bidding** — historical job-cost data sharpens future estimates.
## Cost codes
Break each job into codes (e.g., concrete, framing, electrical) so you can see exactly where money goes. The discipline of coding every invoice and timecard is what makes the data useful.
**Takeaway:** Code every invoice and timecard to a job; that data sharpens every future bid.
> *Educational content — not legal, accounting, or licensing advice. Rules vary by state and change; verify with the licensing board and a CPA.*
