Cost plus contracts are common across residential building and construction projects. Customers like them on new builds or renovations as they allow flexibility for any changes that may arise. Builders like the lower risk than a fixed price contract. The client is only charged for hours of labour and materials used (plus an agreed margin) as the job progresses. But many builders struggle to manage these contracts effectively and end up with poor profit margins!
It can be pretty tough tracking all of the various costs that you have incurred on a job such as supplier invoices for materials or subbies. If you miss any of these costs, you are likely to undercharge the customer and get an incomplete picture of your job profitability. Nextminute ensures that no material or labour costs are missed, leveraging the cloud accounting ecosystem to streamline and automate your cost plus invoicing.
It’s already easy to forward through PDF supplier invoices into Xero/MYOB where a supplier bill is automatically created (via Hubdoc or Receiptbank). Nextminute now allows you to pull these Xero bills through into NM and link them directly to a job. From there you can mark up the bill and generate and send an invoice directly through to your customer.
How it works:
- Forward your emailed supplier invoices straight through to Receiptbank (or HubDoc) which will flow straight through to Xero/MYOB
- Nextminute pulls the supplier invoices through – simply match some or all of the bill to the right job ready for invoicing
- Labour – NM has all your workers timesheets and rates which flows straight through to the job. See FEATURES to learn more
- Invoicing time – your invoice is mostly complete before you start, simply check your markups and send it straight to the customer for payment
- Backcosting, too easy – with all costs linked to your jobs, it’s so much easier to run detailed back costing to understand your true profitability on all of your jobs
We are holding a webinar to discuss how you can get cost plus invoicing humming so that you make money on your building and construction jobs. Hear some of the lessons from builders and their bookkeepers, hints and tips on how to get it right and things to watch out for.