Know Your Numbers: The Ultimate Guide to Field Service Reporting & Job Costing

ByField Service Tools Editorial Team

There is a dangerous phrase in the trades: “Busy means profitable.”

You see the trucks rolling, the phones ringing, and the dispatch board full. You assume you are making money. Then you look at the bank account at the end of the month, and it’s surprisingly empty.

This is the “Bank Balance Trap.”

Most small service businesses run on “Gut Feeling” accounting. They know how much came in and how much went out, but they don’t know where it came from or where it went. Did the big commercial install make money, or did it actually lose money because of five unpaid return trips? Is your top technician actually profitable, or does his high callback rate destroy his margins?

Field Service Reporting & Job Costing is the cure for this blindness. It moves you from “Accounting for Taxes” (looking backward once a year) to “Accounting for Operations” (looking forward every single day).

This guide is your blueprint for financial maturity. We will cover the three stages of growth, the specific KPI benchmarks you should hit in 2026, and which software gives you the dashboard you need to scale.

Contents show

Quick Definitions

Job Costing: The process of tracking expenses (Labor, Materials, Subcontractors, Equipment) for a specific job and comparing them against that job’s revenue to determine Gross Profit.

Labor Burden: The true cost of an employee hour. It includes their hourly wage PLUS payroll taxes, workers’ comp, health insurance, vehicle costs, and uniform. (e.g., A \$30/hr tech might actually cost you \$45/hr).

Gross Margin: (Revenue – Cost of Goods Sold) / Revenue. This tells you if you are pricing your jobs correctly before overhead.

WIP (Work In Progress): An accounting term for costs incurred on a project that hasn’t been billed yet. Critical for construction/project-based businesses.

KPI (Key Performance Indicator): A measurable value that demonstrates how effectively a company is achieving key business objectives (e.g., “Revenue per Lead”).

SoftwareBest ForStarting PriceAction
Jobber
⭐⭐⭐⭐⭐ (4.9/5)		🚀 Best Overall
Small to Med Business		$19 / monthTry Free
Read Review
Workiz
⭐⭐⭐⭐⭐ (4.8/5)		📞 Best for Dispatch
Locksmith & Garage		$29 / monthTry Free
Read Review
Housecall Pro
⭐⭐⭐⭐☆ (4.6/5)		🎨 Best for Visuals
Residential Sales		$49 / monthVisit Site
Read Review
ServiceTitan
⭐⭐⭐⭐☆ (4.5/5)		🏢 Best for Enterprise
Commercial & Heavy Service		Custom QuoteGet Demo
Read Review
FieldPulse
⭐⭐⭐⭐☆ (4.5/5)		📱 Best Mobile App
Easy to Use		$59 / monthVisit Site
Read Review
RepairShopr
⭐⭐⭐⭐☆ (4.4/5)		💻 Best for Repair Shops
IT & Electronics		Custom QuoteVisit Site
Read Review
Simpro
⭐⭐⭐⭐☆ (4.4/5)		🏗️ Best for Projects
Construction & Security		Custom QuoteGet Demo
Read Review
Service Fusion
⭐⭐⭐⭐☆ (4.3/5)		🎧 Best for VoIP
Mid-Market Service		Custom QuoteGet Demo
Read Review
FieldEdge
⭐⭐⭐⭐☆ (4.2/5)		🔄 Best for QB Desktop
Legacy Sync Users		Custom QuoteVisit Site
Read Review
Successware
⭐⭐⭐⭐☆ (4.2/5)		📊 Best for Accounting
Plumbing & HVAC		Custom QuoteVisit Site
Read Review
Zoho Field Service
⭐⭐⭐⭐☆ (4.1/5)		💰 Best Budget
Zoho Users		$15 / monthVisit Site
Read Review
Thryv
⭐⭐⭐⭐☆ (4.0/5)		📢 Best for Marketing
All-in-One CRM		Custom QuoteVisit Site
Read Review
RazorSync
⭐⭐⭐☆☆ (3.9/5)		⚡ Simple Service
Field Service Basics		Custom QuoteVisit Site
Read Review


✅ Verified Data: Checks on Jan 29, 2026 via vendor portals.
Source: Pricing Index
(DOI/Dataset).




Disclosure: We may earn commissions. Learn more & Methodology.

The 3 Stages of Financial Maturity

Every field service business evolves through three distinct stages of financial tracking. Recognizing where you are today is the first step to moving up.

Stage 1: Cash Accounting (The “Shoebox” Phase)

  • The Mindset: “If there is money in the bank, I can buy tools. If there isn’t, I can’t.”
  • The Method: You run the business out of the checkbook. You might look at the bank app daily. You hand a shoebox of receipts to a CPA once a year to do taxes.
  • The Risk: You are flying blind. You have no idea which jobs are profitable. You are highly susceptible to “Surprise Tax Bills” because you thought the cash in the bank was profit, but it was actually sales tax liability or deferred revenue.
  • Software Level: Excel, Pen & Paper, or basic invoicing apps.

Stage 2: Accrual Accounting (The “Compliance” Phase)

  • The Mindset: “I need to know my Profit & Loss (P&L) statement.”
  • The Method: You use QuickBooks or Xero. You have a bookkeeper who reconciles the books by the 20th of the following month. You know your total revenue and total expenses.
  • The Problem: This is “Lagging Data.” By the time you see the P&L on February 20th, the money you lost in January is gone forever. You can see that you lost money, but the P&L won’t tell you which job caused the loss.
  • Software Level: QuickBooks integration with basic FSM tools like Jobber.

Stage 3: Operational Intelligence (The “Growth” Phase)

  • The Mindset: “I need to know if I made money today.”
  • The Method: You use advanced FSM software with Job Costing. Revenue and costs are tracked in real-time. You look at a dashboard every morning that shows “Yesterday’s Gross Margin.”
  • The Power: This is “Leading Data.” You see a trend (e.g., “Copper usage is up 10%”) and correct it mid-week, saving thousands of dollars before the month ends.
  • Software Level: Enterprise tools like ServiceTitan or Simpro.

The Core Metric: “True” Job Profitability

To reach Stage 3, you need to master the Job Costing Formula. Most businesses get the “Labor” part wrong because they only count the hourly wage.

The Formula:
Job Revenue - (Material Cost + [Labor Hours x Burden Rate]) = Gross Profit

The “Labor Burden” Reality Check

Let’s look at “Steve,” your lead technician.

  • Hourly Wage: \$30/hr.
  • You think: “If I charge \$50/hr, I make \$20 profit!”

The Reality:

  • Taxes (FICA/FUTA): +$3.00/hr
  • Workers Comp: +$2.00/hr
  • Health Insurance: +$4.00/hr
  • Van/Gas/Insurance: +$6.00/hr
  • Uniform/Training/iPad: +$1.00/hr
  • True Cost (Burden Rate): \$46.00/hr

If you charge \$50/hr, you are making \$4/hr, not \$20. One traffic jam, and you are losing money. Advanced software allows you to input this “Burden Rate” so your reports reflect reality.

Setting Your KPIs: Benchmarks for 2026

Once you have the data, what should the numbers look like? Based on industry averages for healthy, growing HVAC/Plumbing/Electrical businesses (targeting 15%+ Net Profit), here are your benchmarks.

1. Labor as % of Revenue

  • Benchmark: 28% – 32%
  • Analysis: If your technicians’ labor (including burden) costs more than 35% of your total revenue, you are either:
    • Underpricing your services (Need to raise rates).
    • Inefficient (Too much non-billable drive time).
  • Action: Review your technician mobile app timesheets to reduce unallocated time.

2. Materials as % of Revenue

  • Benchmark: 15% – 20%
  • Analysis: If this creeps up to 25%, you have “Leakage.” Parts are walking out the back door, or technicians are forgetting to bill for small items (glue, wire nuts, capacitors).
  • Action: Implement tighter inventory and parts controls.

3. Marketing Cost per Lead (CPL)

  • Benchmark: $150 – $300 (depending on trade/market).
  • Analysis: A $50 lead sounds great, but if it’s a “tire kicker,” it’s worthless. A $300 lead for a System Replacement is a bargain.
  • Total Marketing Spend: Should be 8% – 12% of Revenue for growth mode, or 3% – 5% for maintenance mode.

4. Quote Conversion Rate

  • Benchmark:
    • Service/Repair: 65% – 75%
    • Install/Replacement: 40% – 50%
  • Analysis: If your conversion rate is 90%, you are too cheap. Raise prices. If it is 20%, you have a sales training problem or a trust problem.
  • Action: Use estimates and quotes software to track “Sold vs. Sent” ratios per technician.

Key Reports Every Owner Needs

1. Technician Performance Scorecards

Your technicians are your revenue engine. You need to know who is performing.

  • Metrics to Track:
    • Revenue per Billable Hour: Is he efficient?
    • Average Ticket: Is he offering options (Good-Better-Best)?
    • Recall (Callback) Rate: Does he fix it right the first time?
  • Action: Use this data to bonus your top performers. Gamification works—put the leaderboard on the wall.

2. Marketing ROI (Revenue per Lead Source)

You spend \$5,000 on Google Ads and \$1,000 on Flyers. Which one worked?

  • The Trap: “I got 50 calls from flyers!” (But they were all \$100 repair jobs).
  • The Truth: “I got 10 calls from Google, but 5 were full system installs (\$50k revenue).”
  • Action: Stop asking “How did you hear about us?” manually. Use tracking numbers (CallRail or integrated FSM features) to map revenue back to the specific ad campaign.

3. WIP (Work in Progress) Reports

For businesses handling large projects (Commercial, Construction), “Cash Accounting” lies to you.

  • The Scenario: You get a \$50,000 deposit for a project. The bank account looks rich. But you haven’t bought the materials or paid the labor yet.
  • The Report: A WIP report tells you: “You have collected \$50k, but you have \$40k of future liability. Don’t spend that money on a new truck.”
  • Comparison: See how Simpro vs ServiceTitan handle WIP reporting differently.

Top Software for Reporting

Different tools offer different levels of “Financial Depth.”

SoftwareBest ForReporting DepthKey Feature
ServiceTitanEnterprise GrowthHigh (Deepest)Custom Dashboards: Build your own view with granular KPIs.
SimproCommercial ProjectsHigh (Project)WIP Reporting: Tracks long-term project profitability.
JobberSmall BusinessLow/MediumSimple Overview: “Money In vs Money Out.” Easy to read.
Housecall ProResidential SalesMediumSales Leaderboard: Great for motivating sales techs.

The Monthly Profit Autopsy

You don’t need to be a CPA, but you do need a routine. Set a recurring appointment with yourself (or your Ops Manager) on the 5th of every month to run this checklist.

  • [ ] Variance Check: Run the “Estimated vs Actual” report. Which jobs went over budget on materials? Why?
  • [ ] Callback Audit: Identify which technician had the most “Recall” jobs (return visits for free). Schedule a training session with them.
  • [ ] Pricebook Review: Did your gross margin slip below 50%? If so, check if supplier prices (copper, freon) increased. Update your flat rate pricebook immediately.
  • [ ] Unbilled Work Audit: Check the “Completed but Not Invoiced” report. Are there finished jobs sitting there without an invoice sent? Clear this queue to fix cash flow.
  • [ ] Membership Churn: How many recurring contracts cancelled last month? If the number is spiking, check your customer service logs.

How to Use Data to Grow

Once you have the reports, what do you do?

  1. Fire Bad Customers: Use “Profitability by Customer” reports. You will often find that your biggest customer (who demands discounts and calls on weekends) is actually your least profitable. Fire them to free up capacity for profitable work.
  2. Adjust Pricing: If your “Job Costing” shows your margin on Water Heater installs has dropped to 30% because material prices rose, you have the data to justify a price increase to your team and customers.
  3. Gamify Performance: Put the “Technician Leaderboard” on a TV in the breakroom. Watch how fast your techs start competing to see who has the highest “Average Ticket.”

FAQ: Reporting & Job Costing

What is job costing?

Job costing is tracking the specific revenue and expenses (labor + materials) for each individual job to determine if that specific visit was profitable. This differs from general accounting, which looks at the business as a whole.

How do I calculate labor burden?

Add up a technician’s annual expenses: Gross Wages + Payroll Taxes + Benefits + Vehicle Costs + Training + Uniforms. Divide this Total Annual Cost by their Total Billable Hours per year. This gives you their “Burdened Hourly Rate.”

Why does my P&L show profit but I have no cash?

This is common. Profit is “Accounting Theory” (Revenue – Expenses). Cash is reality. You might have “Profit” because you sent invoices (Revenue), but if customers haven’t paid you (Accounts Receivable) or if you spent all your cash buying inventory (Assets), you can be profitable but cash-poor.

What is the difference between Gross Margin and Net Profit?

Gross Margin is (Revenue – Cost of Goods Sold). It measures efficiency at the job level (e.g., did we price the water heater install correctly?). Net Profit is (Gross Margin – Overhead). It measures the efficiency of the entire business (e.g., is our office rent too high? Are we spending too much on marketing?).

How often should I check my reports?

Daily: Dispatch Board, Revenue booked, Lead intake.
Weekly: Technician Scorecards, Callback Rate, Cash Flow projection.
Monthly: P&L, Marketing ROI, Membership Churn.

Can software track commission for technicians?

Yes. Advanced tools like ServiceTitan and FieldEdge have commission modules. You can set rules (e.g., “5% on Parts, 10% on Labor”) and the software automatically calculates the commission based on the closed invoice, saving hours of spreadsheet work.

Does Jobber handle complex job costing?

Jobber handles basic “Profit per Job” (Revenue – Labor – Materials). However, it does not allow for complex “Labor Burden” calculations or Overhead allocation like ServiceTitan or Simpro. It is best for simple, direct costing.

How does inventory affect job costing?

If you don’t track inventory usage on the job, your costs are understated, and your profit looks artificially high. You must assign the cost of the part to the job when it is used, not when you buy it from the supplier.

Can I track profit by department (e.g., Installation vs Service)?

Yes. This is usually done via “Class Tracking” in QuickBooks or “Business Units” in FSM software. It allows you to see that your Service Department is breaking even (as a lead generator) while your Install Department makes all the profit.

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