How Cost Codes Improve Budget Management
Cost codes help organize expenses by grouping similar types of costs, such as labor, materials, or Subcontractor services. This organization allows for detailed tracking, ensuring that projects stay within budget and enabling managers to quickly identify areas of overspending.Best Practices for Using Cost Codes
Each expense should be carefully assigned to the appropriate cost code. Financial management software can automate this process, ensuring that expense tracking is accurate and easily accessible for reporting and audits.Related Terms: Cost-to-Complete