Project Management: Budgeting

Budgeting can be a B....ig problem for all of us. Especially when you manage projects. It needn't be. Jump on this budgeting train for less headaches and stress and more unicorns and puppies. 

Be able to budget like a boss

Are budgets only important to the company and not the client?

Budgeting

Importance of budgets and managing costs:  Budgets are not only important to the project management company, but also to the client. Businesses operate to make a profit and clients need to be happy with a service rendered for the company to build a reputation and attract more clients. Budgets for the project management company are there to ensure that what is costed for is produced. Without budgets, the company can run into financial difficulty and the client can receive invoice which are more than they expected. Budgets also dictate the number of people who can work on a project; it is not solely based on deliverables.

Various budgeting tools are available to project management companies. The use of specific tools depends on the size of the project and the complexity thereof. The Earned Value Management Method is an example of tools that will be discussed and addressed in the notes. Projects can also be based on similar projects done in the past. There are numerous budgeting tools available for the project management company to use, some of which are free. Using free applications and software can also reduce costs and save the company some money in the end.

  • Yes! Clients always have lots of money!
  • Of course... Our budget has nothing to do with anyone else.
  • No! It is important to both parties.
  • No! It is also important to the birds and bees. They also want money