It’s common knowledge that financial planning is such an important element of running a business – and it always has been. The caliber of your planning processes can sometimes make or break your company, especially in the context of the recession back in 2008. Company-wide budgeting and forecasting is usually routine and almost always involves multiple players coming together with actual transactional figures and projections for the period you are planning. But sometimes an organization or a project manager has to plan for a particular task or project. If you count yourself amongst the consultant, project manager, or other professionals who are tracking and billing hours, overseeing multiple projects, or crafting a bid for a job, project budgeting is something you know inside and out in your career.
I’m sure you can agree that financial planning is such a necessary aspect of performance management in today’s business world. The quality of your budgeting and forecasting tasks can sometimes be the difference between life and death for businesses, especially when you think about the 2008 recession. Organization-wide planning responsibilities are typically regular and almost always entail a number of pieces bringing together actual transactional numbers and projected figures for the planning period. However, sometimes a company or a project manager has to budget and/or forecast for a project or specific task. If you are a consultant tracking and billing your hours to a client, a project manager managing multiple projects, or a freelance professional putting together a bid for a gig, project budgeting is undoubtedly a term you’re quite familiar with in your position.
You can go ahead and nod your head in agreement when I say that financial planning is such an essential element of corporate performance management (CPM). Sometimes, the caliber of your planning processes can mean life or death for enterprises, particularly in the context of the all too recent recession. Company-wide planning processes are generally routine and almost always require multiple moving pieces to bring together actual transactional figures and projections for the upcoming planning period. Alternatively, there are times when an organization or a consultant has to budget for a particular task or project. Whether you are a project manager overseeing multiple projects, a consultant tracking your billable hours, or a freelance professional crafting a bid for a job, project budgeting then is an important Business Intelligence (BI) term in your role.
Project budgeting is a task that most companies have to tackle, in some form or another. This article will address how to financially plan for special projects using Microsoft Dynamics and other ERP systems.
At this point, it probably goes without saying: budgeting is such an important aspect of corporate performance management (CPM). In some cases, the quality of the budgeting process can be life or death for a company or a public sector organization, especially in today’s post-recession marketplace. Budgeting and forecasting for an entire organization is a routine process and generally involves many moving parts to come together, linking actual data and projections for the upcoming fiscal year. However, sometimes a company or a professional will have to budget for a specific task or project. Whether you are a professional managing one or more projects, a consultant calculating billable hours, or a freelancer putting together a bid for a job, project budgeting becomes a relevant Business Intelligence (BI) term in your job.
Solver COO Corey Barak gives some tips when considering project budgeting solutions.
Last month, I had a conversation with a management consultant who had the task of bringing a company into the 21st century in terms of Business Intelligence. He was in the beginning stages of the project, and he did not know if he was going to find a comprehensive BI suite of tools for simultaneous implementation that would meet the financial goals of the organization for this initiative. We got to talking about the structure of budgeting for a consultant of his sort – and that naturally segued into a full-fledged conversation about project budgeting. He said that, in his experience, most people understand it as a fuzzy art at best, but in practice – and with the right tool, it can be significantly more accurate than widely perceived.