5 Quick Tips for Effective Budgeting within Project Management

This article is supported by ProjectVision, a highly functional web-based project management software. Established in 1999, ProjectVision is a leader in project, portfolio and performance management software.

With the extra budgetary pressures every organization is facing today they want to ensure that the money they invest into a project relating to product, transformation or IT is put to good use. Budgeting questions and benefit realisation 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, external resources etc.? In short can we deliver within budget?

Budget allocation 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 acumen to ensure their projects don’t overrun its financial plan.

A few tips to help keep to the project budget:

  1. 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 needs to be reviewed with your accounts department to ensure that the budget doesn’t go over the set amount. It will be much easier to make the necessary amendments to the budget if problems are spotted early.
  2. Scope management: Scope creep or change requests can cause huge problems for a project and is one of the most common causes of project cost overruns. Unintended work can’t help but creep into a project. Unplanned resource hours can play havoc on your project’s predesigned budget. As the Project Manager, you must have a process in place to deal with extra work and manage your project scope. Having a change order system in place could provide you with the necessary control needed to keep your budgets in order.
  3. Communicate: Communication is key in any situation and it 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 project 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 you 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 project must be proactively managed; it is an important component of the process and should be reviewed by the project manager, financial team, stakeholders and key project team members regularly. Keeping a firm grasp on the project budget will ensure that it is kept within the forecast set from the beginning.

Recommended Project Management Software

If you’re interested in learning more about top rated project management software, the editors at Project-Management.com actively recommend the following:

1 monday.com

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monday.com Work OS is the project management software that helps you and your team plan, execute, and track projects and workflows in one collaborative space. Manage everything from simple to complex projects more efficiently with the help of visual boards, 200+ ready-made templates, clever no-code automations, and easy integrations. In addition, custom dashboards simplify reporting, so you can evaluate your progress and make data-driven decisions.

Learn more about monday.com

2 ClickUp

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ClickUp is one of the highest-rated project management tools today. Use Docs, Reminders, Goals, Calendars, Chat, scheduling, assigned comments, custom views, & more with this all-in-one project management tool.

Used by 800,000+ teams in companies like Airbnb, Google, and Uber, it brings all of your projects into a single app! Built for teams of all sizes and industries, Our fully customizable & proprietary features make it a must-have for anyone wanting to keep project management in one place.

Learn more about ClickUp

3 Wrike

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Tackle complex projects with Wrike’s award-winning project management software. Break projects into simple steps, assign tasks to team members, and visualize progress with Gantt charts, Kanban boards, and calendars. Manage resource allocation and forecasting with software that’s easy to launch. Automation and AI features strip away time-consuming admin tasks so you can do the best work of your life. Streamline your practices, align your team, and ensure you hit deadlines and stay on budget.

Learn more about Wrike

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