5 Tips for Efficient Budgeting Within Project Management

5 Tips for Efficient Budgeting Within Project Management
By Cora Systems

Organizations today are facing increasing pressures when it comes to their budgets around project management. There is a real need to only invest in a project that will be successful. Budgeting queries and benefit awareness should be forefront in the mind for the assigned project manager. How much is this project going to cost? Have all budgetary items been accounted for including man hours, equipment, outside resources etc. To sum up, can this project be delivered successfully within an assigned budget?

Budget distribution can determine the success of a project. Any project that is completed within the predetermined schedule and reaches the goals set should not be deemed a success without the project meeting its budgetary requirements. Therefore today, project managers need financial insight to ensure their projects don’t overrun its financial plan.

A few tips to keep in mind when managing your projects to ensure they stay within budget would be:

1. Review and Forecast the budget frequently: By not examining the project budget forecast frequently can ultimately leave you in a position of no return. The budget forecast should be consistently reviewed the project management and the accounts department to ensure that the budget doesn’t go over the set amount. If an issue is spotted early it will be much easier to make the necessary amendments to the budget.

2. Tight scope management: Scope creep or change requests can cause unnecessary issues for a project and is one of the most common causes of project overruns. Having unintended work has a way of creeping its way into a project. Unplanned resource hours can play havoc with your projects pre-designed budget. As the project manager, he/she must have a process in place to deal with extra work and manage the projects scope. Having a change order system in place could provide you with the necessary control needed to keep your budgets in order.

3. Communicate: I am a strong believer in clear lines of communication and my belief is no different when it comes to budgeting. It is important that you communicate to the other project team members any details regarding the projects spend and budgets. A well informed project team will ultimately aid you in keeping to assigned budgets.

4. Risk and issues: Possible risks and existing issues have a way of getting their way into projects and causing destruction. Therefore it is important to keep track of them and reduce the level at which they can affect your projects budget. It is next to impossible to stay clear of risks and issues however you can have a plan in place for when and if they do arise.

5. Resources: The resources assigned to a project are ultimately where most of your project budget goes. As a project manger it is essential that they examine the resources and skills closely to ensure that they are being fully utilized and that the ideal resources are matched to the right projects.

Budgeting and financial control of your projects must be proactively managed; it is an important component of the project management process and should be reviewed by the project manager, financial team, stakeholders and key project team members regularly. By keeping a firm grasp of the project budgets will help you ensure that they are kept within the forecast set from the beginning.

Established in 1999, with over 12 years of experience in Project Management Software, Cora Systems have developed a highly functional, web-based system. Our skills and knowledge have enabled us to become a world leader in Project, Portfolio and Performance Management Software. We value our extensive client base and provide a comprehensive range of services to ensure our customers gains the full value and benefits from using ProjectVision. www.corasystems.com