A Guide to Project Management Budget Tracking (WIth Tips)

Le budget d’un projet ne se résume pas seulement à la question financière. Il s’agit également d’un plan de dépenses qui vous conduit à travers la conception, l’exécution et la livraison de votre projet. Lorsque vous maîtrisez l’art d’établir un budget, vous vous assurez que votre équipe dispose des ressources nécessaires pour accomplir un travail de qualité. Dans cet article, nous vous présenterons le processus de création d’un budget, puis nous vous ferons part de nos conseils pour lancer votre projet sur de bonnes bases.

Si votre projet était un véhicule, le budget en serait le carburant. Tout comme un camion doit avoir de l’essence dans son réservoir pour pouvoir avancer, l’argent et les ressources sont indispensables à la réalisation de tout projet. En tant que chef de projet, vous êtes à même de planifier et d’utiliser ces ressources le plus efficacement possible, afin que votre projet puisse être mené jusqu’à son terme, dans les délais impartis.

Project budget tracking enables you to monitor how much of your budget has been spent over time, to see how much is remaining and course-correct when necessary. For example, imagine one of your project tasks took much longer than budgeted.
  • Create a Baseline. After you’ve created your project’s schedule, it’s important to implement a baseline that can be used to track your tasks and project performance. …
  • Forecast the Budget. …
  • Outline Resource Usage. …
  • Monitor Your Schedule. …
  • Manage Scope.

What’s the best tool for project budget tracking?

Why is project management budget tracking important?

Tracking project budgets helps to:

What is project management budget tracking?

Project management budget tracking is the monitoring of the amount of money that an organization has already spent on the project and the amount remaining regarding the pre-established budget. In project management, cost, time and scope are the three most important aspects to consider for success. As a project manager, you can account for this cost in the budget, which helps control how much money you allocate to the different features of the project and at what time.

The budget can be tracked to ensure it doesnt exceed the predetermined limits. If the expenses exceed the limit, you can make corrections to ensure the project is on track and within the budget.

Elements of project management budget tracking

Consider the following elements of project budget tracking:

Income

Income is the amount of money you may receive from working on a project. There are three types of incomes associated with project management. Zero income is where theres no income to track, which occurs when youre working on an internal project for your employer. Fixed income is the fixed price of the project that the project owner agrees to pay. It may come in installments stretched over time or in one payment. Cost-plus income is where you gain profit in addition to the fixed income. Project managers track cost-plus income in projects where estimating project costs become challenging.

Expenditure

This is the amount of money you use during the life of the project. You can calculate the amount when the project tracks how much money youre using. There are two types of expenses accumulated in projects. These include fixed and variable costs. Fixed costs rarely change. For example, the price of materials used during a construction project may not change as the project progresses. Variable costs vary with activity or time.

Sub-contractor hours and labor hours are examples of variable costs. If you spend more time on a project, the ultimate cost of the project may increase. In budget tracking, its crucial to monitor variable expenses, as theyre the most likely to determine the total expenditure of a project. They can exhaust your resources if not taken care of promptly.

How to perform project budget tracking

Developing a budget is the first step toward ensuring a project progresses smoothly within the pre-defined parameters. Tracking the budget and ensuring expenses and incomes are being maintained is the next step. Tracking your project budget is a continuous task that requires you to stay up to date with every purchase or payment made on behalf of the project. Follow these tips to track your project budget:

1. Develop a budget system

The first step to tracking your budget is designing an accurate system that keeps track of all expenses made during the project. The system notes whos spending the money and how much they spend. This way, you can have a dependable idea of where funds are going. You may choose to use project management software with budget tracking tools or a spreadsheet processor to list all expenses.

You may additionally set specific schedules that can remind you to update your system regularly. Most large organizations have fully dedicated applications to track their budget during projects. Medium-sized companies can choose to subscribe to project management tools offered by third parties. If youre working on a small project, you can manually track your budget using a notebook or a mobile phone notes application.

2. Provide remote access to the system

A sound budget tracking system may have features of being accessible. This can increase collaboration, especially for off-site or field projects. If multiple teams are handling the project, an online budget tracking system makes cooperation easier. Clients or supervisors may also access the budget track online if they wish to enhance transparency and accountability.

3. Identify budget items and develop the budget

Once you have the system in place, you may list the items you can track in the budget. These items vary according to project or industry. Its vital to detail each item to improve preciseness and accuracy during tracking. Identify which tasks are to be completed and allocate the budget estimate to each task. Examples of tasks include travel expenses, legal costs and material purchases. Create the budget by identifying the fixed and variable costs. Gain the approval for the budget from management or the client, if required.

4. Track and control expenses simultaneously

As the project progresses, you may then track the flow of funds from one point to another. Establish a means of notification to keep you updated whenever there are irregularities, missing details or overspending within the budget tracking system. You can use automated project management software to monitor purchases and integrate the systems into bank accounts to stop the flow of money whenever you exceed the budget amount.

If you cannot track the budget individually, you may assign the task to a team member who can notify you whenever theres an issue with the budget, or keep you informed of the progress. If youre using a spreadsheet application, consider adding the budget to the cloud in case of unexpected events.

Tips for efficient budget tracking in projects

The goal of tracking the budget is to ensure the project is complete at the right time, with the right quality and within the set budget. This way, you can avoid requesting extra funds to complete your project. Tracking the budget during a project is one of the most challenging tasks of a project. Follow these tips for efficient project budget tracking:

FAQ

How do you track budgets in a project?

How to Track Project Expenses & Costs
  1. Establish Cost Tracking Systems. The first rule is to have a system in place to deal with your expenses and have the capacity to track them. …
  2. Provide Online Access. …
  3. Identify Budget Items. …
  4. Create a Project Budget. …
  5. Assign Someone to Track Expenses. …
  6. Track and Control Expenses In Real time.

How do project managers manage budgets?

7 steps to creating and managing a project budget
  1. Outline your project tasks, milestones, and supplies. …
  2. Estimate your project budget. …
  3. Get your project budget finalized. …
  4. Create a project budget tracker. …
  5. Monitor your project budget. …
  6. Create a budget change process. …
  7. Review and preserve your project budget report.

What are the 4 four project budget management steps?

The Four Steps in Project Cost Management. While cost management is viewed as a continuous process, it helps to split the function into four steps: resource planning, estimation, budgeting and control.

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