A project isn’t static, it’s more of a shape shifter. As a project progresses through its weeks and months the budget can overspend. Yes you have to budget for 2017!
Even if your project meets its deadline and your CEO is happy with the result, a project that overspends will not be seen as a successful one.
Project budget management is very time-consuming and you have to be on top of your game at all times. The word “budget” like the word “diet” makes any CFO’s stomach turn. They are restrictive reminders of something we cannot have. Both of these words are just tools for each of us to use to achieve our goals.
A budget is no more than “planned measured spending”.
Tweet This: The word “budget” like the word “diet” makes any CFO’s stomach turn @rubberstampio #CFO #Budget
A few helpful steps to follow for planning a new budget
Know your business, what are the key factors for profitability? You should assess how likely the price of any commodity is to change in the future. Can you adjust the quantity you use, or should you shop ahead and fix the price?
- Be sure to analyze your business’s strengths, weaknesses, opportunities and threats.
- Interest rates are unpredictable so having a good grasp on your business plan and a well-planned budget will help you reach your budget goals.
- Have proof to support claims that you make in your projections. Show clearly what you intend to achieve, and how you will deliver outcomes.
- Know your competitors and research your market needs well.
- Your budget plan should adapt to changes in the market and the economy – and that means regular reviewing and updating.
All strategies need money to succeed. Consider a wide variety of factors when setting your budget. Regularly compare actual results to the budget.
Why most budgets don’t work
A budget requires you to stay within a certain spending limit in order to stay on track and reach financial goals. This can feel very restricting, and doesn’t line up to spending priorities.
- Make sure your budget process allows for on-demand tracking
- Check-in with spending habits of all departments regularly
- Reconcile your budget every month
There are plenty of other ways to manage your money. But the aim is to find a budget plan that works, and is a joy to use without the word budget filling you with dread.
Putting your “budget” on a “diet” is and even better idea.
Introducing the Procurementexpress.com purchase order app to your project will help your company achieve sustainable growth through efficient spend management. It’s a straightforward easy to use application that anyone of your staff members can use with ease. We have a support team ready 24 hours a day to assist you in customizing your budget plan to fit your project.
While you are at the gym keeping CFO fit, our app will instantly send you purchase requests as they happen.
Successful trading means making the right decisions. An experienced lead cost controller will know the significance of progress and its overall effect on the project. Taking a serious interest in the spend rate is a given.
Don’t stress about the budget just Procurementexpress.com it!