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.