How Do I Stop Jobs Getting Mixed Up in the Accounts?
Jobs get mixed up in the accounts when costs aren’t coded accurately or consistently. The fix is to set up a clear job structure in your accounting software, train staff to code correctly, and use systems that connect site data to finance in real time — ideally through a Virtual Finance Office.
Why Job Confusion Happens in Construction Accounting
In most construction businesses, projects overlap. Materials are ordered for one job but delivered to another. Labour hours spill over. Invoices arrive late or without job references.
This is where the trouble begins. Without a clean system:
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Materials and labour end up coded to the wrong job.
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Profit margins look better (or worse) than reality.
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Retentions and variations go missing.
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Directors can’t trust the numbers when making pricing or hiring decisions.
At Thomas Emlyn Ltd, we see this issue in almost every new client before they join our Virtual Finance Office. The root cause is rarely laziness — it’s lack of structure and system design.
What Exactly Is “Job Costing” — and Why It Matters
Job costing tracks every pound spent and earned per project — from labour and materials to overhead recovery. Without it, you can’t measure job profitability accurately, meaning you may be winning work that looks profitable but isn’t.
Think of It Like This:
If your bookkeeping is the engine, job costing is the dashboard. It shows:
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Which jobs are profitable
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Which ones are draining cash
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Where estimates went wrong
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How to price future projects more accurately
Without accurate job data, you’re driving blind.
How to Keep Jobs Separate in Your Accounts
Create a standardised job-coding structure in your accounting system, make it mandatory on every transaction, and automate data capture from site. This ensures that each material, labour, and subcontractor cost lands in the right job — not just the right ledger.
Step-by-Step System Setup
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Create unique job codes — short, consistent, and easy to identify.
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Set up tracking categories in Xero or QuickBooks (e.g. “Site”, “Project”, “Client”).
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Require job references on every supplier invoice and timesheet.
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Use cloud tools like Simpro, Tradify, or Fergus to capture site data automatically.
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Review monthly — reconcile costs against budgets and forecast profit by job.
Pro Tip: In our Virtual Finance Office, every cost must pass the “three-way check” — job code, category, and approval. It stops errors before they ever reach the accounts.
How Mixed-Up Jobs Damage Margins and Cashflow
When jobs get mixed up, your numbers lie. You can’t tell which projects are profitable or where overspends are happening. It also distorts cashflow — because income and costs are matched incorrectly, hiding the true performance of each site.
Example
A refurbishment company we support had £120k of materials showing against one job that actually belonged across three. The profit on paper looked great — until they discovered the error.
After implementing structured job codes and weekly cost reviews through their Virtual Finance Office, margins improved by 9% in just one quarter.
What Tools Can Help Keep Projects Organised
Modern job-costing tools link directly to your accounting software, making it impossible to post costs without assigning a project. They also connect timesheets, purchase orders, and materials data — giving you a clear, live picture of every job’s performance.
Recommended Tools
| Task | Recommended Tools | Benefit |
|---|---|---|
| Site data capture | Simpro, Tradify, Fergus | Real-time cost tracking |
| Document storage | Dext, Hubdoc | Easy receipt and invoice matching |
| Accounting | Xero, QuickBooks Online | Job and category tagging |
| Oversight | Virtual Finance Office | Daily review, monthly reporting, accountability |
Integration is key. The fewer times data is retyped, the fewer chances for job mix-ups.
How the Virtual Finance Office Model Solves This Permanently
A Virtual Finance Office (VFO) brings all your systems together — payroll, CIS, job costing, and management reporting — into one connected structure. Every transaction flows through predefined checks so costs land in the right place, and job-level reporting stays accurate month after month.
The Thomas Emlyn Approach
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Live reconciliation of all job-related transactions
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Cost tracking by site, manager, and phase
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Automatic variance alerts when budgets drift
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Monthly finance meetings to review job profitability
This approach means you’re not just seeing the numbers — you’re using them to make better decisions on pricing, hiring, and growth.
Preventing Mix-Ups Before They Happen
Job mix-ups are preventable with clear structure, ownership, and accountability. The goal is to design systems that make it easier to do things right than wrong.
Best Practices
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Set clear naming conventions for every project.
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Keep job codes short and visible.
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Train site staff to use digital tools correctly.
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Review job performance weekly, not just at year-end.
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Delegate one “job cost champion” in your finance team.
FAQs: Job Costing and Project Accuracy
1. What causes jobs to get mixed up in the first place?
Usually unclear job codes, poor communication between site and accounts, or lack of system integration. Fix those, and most errors disappear.
2. How can I check if my current job costing is accurate?
Run a margin report by job. If totals don’t match your expectations or costs appear under “unallocated,” there’s a problem. Your Virtual Finance Director can audit this for you.
3. Do I need expensive software to track jobs properly?
Not necessarily. Even Xero Projects or QuickBooks job tracking can work well when combined with disciplined processes and oversight from a Virtual Finance Office.
4. What if site staff don’t fill in job info consistently?
Automate it. Use mobile apps for receipts and timesheets so job data is captured on-site, not retrofitted in the office later.
5. How often should I review job costs?
At least monthly — ideally weekly for larger projects. Regular reviews prevent small errors from compounding into profit losses.
In Summary
If jobs keep getting mixed up in your accounts, the problem isn’t the people — it’s the process.
With structured job coding, integrated software, and disciplined financial oversight, you can finally see accurate profitability per project and make smarter business decisions.
At Thomas Emlyn Ltd, we help construction companies put systems in place that make accuracy automatic — freeing owners from firefighting and letting them focus on growth. Book a discovery call here.
Thomas Emlyn Ltd
Stronger Margins – Healthier Cashflow – Sustainable Growth
