The objective of this training session is to learn how to create a budget—and how to stay on it. We will talk about the importance of careful and accurate budgeting in the project planning process, the basic steps involved in budgeting for a project, and the importance of monitoring expenditures during project implementation. By the end of the session, you should be better prepared to deal effectively with problems and bring any project in on budget.
Why “Project Planning: Budgeting” Matters:
- Poor budgeting usually leads to expensive cost overruns.
- It can also cause all kinds of other problems and delays and have a serious negative impact on the outcome of a project.
- The budget defines the resources available for a project.
- It establishes spending limits.
- Finally, it provides you with a guide to planning and spending.
- Accurate budgeting is essential to the success of any project, and a manager needs to ensure that all potential costs are accounted for up-front.
- Developing an estimated budget will need to be done before beginning any active phases of the project itself.
- You must also track expenditures precisely during the implementation phase. Creating a budget is only the first step—the project manager also needs to stay on budget throughout the project.
- Failure to take these steps can lead to cost overruns and can have a negative impact on the outcome of your project.