We are focusing on project budget management: Do you need it (& why)? Because handling budgets is undoubtedly a plus. Of course, we might all know that intuitively. From sparing delinquency fees or ensuring we are able to finish a project the way we’re supposed to, many of us may know the most common and more evident benefits of handling a project’s budget correctly.
However, a lot more goes into correct project handling and the budgets to them. And we’d like startups and entrepreneurs to always have the smoothest processes in their companies to get the most value out of their daily tasks. So, let’s walk through this together, shall we?
What is budget management?
Managing budgets is pretty much looking after the allocated sums for a specific task to ensure they’re handled properly. It’s about doing the right kind of admin over the particular duties that make up a project and sticking to those.
How do we handle budgets, though? Of course, we first need to understand every bit of a process for a specific task. So, whenever we start or launch a project, there’s previously been some detailing of everything the central goal requires.
Whether it’s infrastructure, human hours, acquiring goods and services, we need to account for every piece of the puzzle. And understand how those interlock over a specific period. And then cover incidentals, room for any unforeseen expenses along the way, and the chance of having to ask for more or different as unexpected events come up.
So, budget management means overseeing what we said we’d need for the amounts we forecasted—and sticking to that as closely as possible without putting any of the expected results or processes at risk.
What are budget management skills?
People who are good at managing budgets will possess a few essential skills. Because handling budgets isn’t only about being given a specific amount of money and waiting until that’s exhausted at the end date of a given set of tasks. It’s got more to do with knowing quite well how to anticipate costs, expenses, parties involved, and unmentioned needs—and sticking to it until an entire project is over.
To do that, people doing project budget management need to be able to think conceptually and specifically. They should think about long-term and short-term needs to draw clear images of the specific milestones that will get a project finished successfully. And then have the patience and devotion to follow through with that caution for as long as the entire project is alive.
What helps is to know how to prepare in advance and do so neatly and punctually with all variables at hand. Take into account other stakeholders that might affect how we envision projects should work. And define those needs as close to reality as possible.
Managing a budget has to do with the planning of overhead costs as much as financial health analysis. It’s crucial to handle figures and Excel sheets as much as to be able to read financial statements. We need to come up with sums and losses to wrap our heads around specific rubrics. But it’s also about knowing when and where to invest in keeping balance throughout a company’s lifetime. That's especially useful over harsher seasons than others.
These skills include savvy forecasting and even more extraordinary communication abilities to develop the numbers that make sense for what’s usually a much larger bunch.
Are there budgeting tools I can use?
Of course, people will want to help themselves as much as possible when managing budgets. Especially as the pressure dictating what’s possible financially for internal teams lies so heavily on the budget planner’s shoulders. We naturally want to get it right and fast.
So, the answer is: of course! There are specific tools on which we can rely to do our budget management. And Recurring is naturally one of them. With Recurring, internal parties can dialog with other people in the company to register expenses, for instance. And this means a project that’s underway can be quickly helped with automatic expense tracking and electronic invoice uploads.
Tools such as Recurring also automate fees we are paying for various tools. And they track funds going to different apps or parties. That helps isn't only by cutting back on the amount of time it takes to do manual labor on these tracking needs. It also helps keep all of its expense information stored in a secure cloud that everyone can view and handle. And if we want to limit access to just a tiny bunch of approved audiences, we can!
Better yet, these tools also help optimize the expenses we are tracking. For example, they’re able to tell us which apps we’re paying for that no one is using. Or determine which new tools are available that we could use instead.
They remove orphaned tools as well as identify duplicate ones. And can genuinely save tons of our money that we can shoot right back into more worthwhile projects.
Startups could use project management.
Project budget management is something startups could use because it helps keep on top of monthly and recurring expenses. And that can drive business health beautifully. It can mean much better chances at increasing revenue and reaching much sought-after profitability, too.
In a way, this is simply about keeping a house in much better order, which in itself opens leeways to business growth. If anything, staying on top of budgets is a way to ensure clarity and transparency in our financial aspects. And that kind of health is key to a long-lasting and robust company.
Also, bear in mind budgets are part of the most important aspects with which investors have a lot to do. They may want to see figures to decide whether or not to put their money down for a given project or company. It speaks of business vision, experience, and the possibility of making a return on investment (ROI) in straightforward yet also subtle ways.
Staying on top of budgets regularly is sound practice. Especially more so than going blindly at expenses until a yearly period is gone, for instance.
Having a better grip at steady or changing financials lets us handle our resources better, too. And we can, in turn, give better guidance to our teams.
That's also how we can easily define what’s possible and where we want our companies to go. That applies in any particular scenario or circumstance. It explains what’s natural for us, as well. And what needs to be listed as a pending action whenever a budget or project has better room to be executed.
Overall, project budget management done right can bring many fruitful results for any business or party. We hope yours is one of them.