One of the biggest frustrations I hear from business owners is not knowing in real time how much money they are making on each job. They look at Xero at the end of the month, see a healthy number, and assume things are on track. Then six months later, when cash is tight, they realise some jobs barely broke even or were loss-making. The damage is already done. Without clear job tracking, you are driving blind.
The Cost of Poor Visibility
Take the example of a contractor who grew from $1.5 million to $5 million turnover in just two years. On paper, the business looked strong. In reality, the margins were slipping away. Travel, accommodation, and rework costs crept in unnoticed. Staff were being charged to jobs inconsistently, and invoices from suppliers weren’t always matched to the right projects. By the time the year-end accounts were complete, it was clear they had left more than $200,000 of profit on the table.
Turning It Around with Systems
We worked with them to implement a structured system using Xero Projects. Every invoice, timesheet, and subcontractor cost had to be allocated to the right job. It took discipline, but within three months the owners could see exactly which projects were hitting their target 20 percent margin and which were falling short. In one case, a particular client type was consistently underperforming. The data gave them the confidence to adjust pricing and say no to jobs that were dragging profitability down. The turnaround was immediate. Instead of being caught out months later, they were making decisions on the spot that protected cashflow and margins.
Data Beats Gut Feel
The temptation is to rely on memory or gut feel when you are busy, but gut feel cannot tell you whether a particular project type is consistently more profitable or whether a certain site manager is delivering better results. The right system shines a light on what is really driving your bottom line. For this contractor, it meant realising that one team was generating double the margin of another. Armed with that information, they restructured their workforce, invested in the stronger team, and stopped wasting time on jobs that weren’t worth it.
Profit Comes from Discipline
The cost of not tracking jobs properly is more than just lost profit. It leads to poor decisions, missed opportunities, and constant firefighting. Owners feel like they are working harder than ever but never getting ahead. The contractor in our case study now spends one morning a month reviewing job reports, margins, and tax forecasts. It has become a routine governance practice. They are no longer flying blind. They have control, clarity, and the confidence to scale sustainably.
The Best Time to Start is Now
If you want to grow without losing your margins, the best time to get serious about job tracking is now. Every invoice and every hour counts. The right system, combined with the discipline to use it, can be the difference between growth that burns you out and growth that builds lasting wealth.
We also work with several software implementation partners to help our clients with specific software solutions for their businesses.
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Contact us today to discuss on 07 827 9130 or email us. Our office is in Cambridge, NZ, but distance is no problem. We have many international and national clients.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.