Understand What is Project Budget Before you Download this template
Before you download this template, You must understand what is Project Budget is. It is the financial structure of the project development. You can use this template to create optimal use of money, work costs, and funds necessary for the project development. Further, you can detail out each expense item and edit it as per project configuration. Furthermore, you can monitor your budget expenses for the project by comparing actual expenses incurred. It helps to execute the earned-value analysis. So, the project progress and the related costs are thereby can controlled.
The budgets have categories: resource budget (for the allocation of the internal resources); financial budget (for the payment in external services).
How to Prepare a Project Budget?
- This template makes it easy to define and categorize all the costs and funds related to a detailed project.
- Added Fixed Costs columns to calculate the Budgeted amount.
- Multiple columns and rows for fixed costs and funds.
- Allows you to identify material and labour rates for each charge and automatically calculate it in the dollar amount.
- See, whether your project fits into the overall financial structures of your organization or not.
- Historical Information
- Chart of account structure
- Use it for home projects, contract work, small service projects, and large IT project budgets.
Before you initiate project budgeting you’ll have to create
- Project Scheduling: Now what is project scheduling? It is used to determine the scheduling and costs of the project.
- Contracts details: For services, products, and equipment.
- Resources: To check where the resources are assigned for the project their rates and cost.
- Cost Estimate: of activity like equipment, material, and services or the work update when will your project will complete
- Basis of Estimate: Records for the estimation of the cost
- Scope: Let you know about the future funding, contracts, and revenue management.
Importance of project budgeting
The project budget allows the project manager to decide how much the project is likely to cost and how the funds are distributed for the task.
- All over the track of the project, it lets the project manager inspect whether the project is sticking to its budget or not.
- Co-workers to get equipment, and materials when they needed it all dependent on the funds provided as a result of your budget.
- Budgeting is important for your project is because it provides the main things for project money control.
- Help in measuring the project’s actual cost with the approved budget, you can control if the project is progressing according to the plan or not in a corrective way.
- If a project has got a good budget then the scope, objectives, and goals of the project will also be enhanced and clear.
- To secure project funds and budgets
- Well-planned project is good for managing funds and costs.
- Project budget is an estimation of companies financial ability to work.
Thus, you need not invest in expensive budgeting software, instead, you can use this spreadsheet.