Project finances can be hard, we all know that. And not everyone has the support team to help them with it. So luckily help is at hand in the shape of Planner and its project accounting capabilities.
Project Finances – budget setting
It is an essential skill in project management to get a project budget to match the project deliverables. So if you have the luxury of being able to determine the budget for your project it is best to do it right. You will want to be sure that you have included all the costs you will incur during the delivery of the project. The best way to do this is a bottom up estimate of costs. Your plan is of course the perfect starting point for that.
A well planned project should have tasks and milestones for all the activities and events expected. Going through these in Planner you can identify the resources required to deliver each. Sometimes you might list generic resources like Engineer and sometimes specific people i.e. S Jones. As you assign these to the tasks and set the allocation level (as a percentage) Planner works out the number of hours that equates to. You may then choose to set an hourly rate for these resources or leave them at zero rate. Planner rolls up these assignment costs at task level and also through the summaries to a project total for you.
In the same way you can also set Fixed cost elements for tasks and summaries. Your fixed costs are also rolled up for you through summaries to a project level. Finally the system calculates a total Budget cost combining fixed and resource cost elements. You can use this raw figure or apply your own contingency and allowances to it to determine your project cost.
Project Finances – budget checking
Perhaps others usually set your project budget. In that case you will find it very helpful to repeat this exercise of bottom up costing to see how realistic the budget is. You will need to make it clear early on if you have insufficient budget to get the job done. If you have this laid out so clearly it will make your job so much easier. Helping you to either shave the scope or increase the budget to a realistic level.
Project Finances – let Planner carry the load.
Planner will do all of this for you and it is totally free. So register today and download it and you could be taking control of your project finances quicker than you thought possible.
You can register and download Planner for free here.
In the next blog session we carry on this theme to look at using planner for cost control.