![]() Read: Project accounting: How to weight project cost-benefits Create a project estimation template 9 steps to create a project budgetĬreating a project budget may seem daunting, but you can do it by following a sequence of steps. And as your project progresses, you can use your project budget as a baseline to compare actual spend to budgeted spend and mitigate extra costs as they arise. It’s also a good way to pitch your project to stakeholders and get the funds you need, because a detailed spending plan helps approvers understand how costs contribute to your objectives. In fact, respondents in a 2021 Project Management Institute survey reported that in the last 12 months, only 62% of projects in their organization were completed within the original budget.īudgeting before you begin your project helps you scope work and control costs. ![]() When you create a budget plan in advance and use it to monitor spend throughout your project, you can reduce the likelihood that you’ll run out of resources or go over budget-a common occurrence in many workplaces. What is a project budget?Ī project budget is a plan that details how much you’ll spend, for what, and by when. And as a project manager, you have the power to plan and use those resources in the most effective way-so your project gets to its required destination on time, without running out of gas.īecause a project budget is essential to move work forward, knowing how to create and follow a solid budget plan is one of the most important project management skills you can develop over the course of your career. Just like a truck needs gas in its tank, projects need money and resources to keep them going. If your project was a car, a budget would be its fuel. In this article, we guide you through the budget creation process and offer tips to set your project up for success. ![]() When you master the art of budgeting, you can ensure your team has the resources they need to deliver quality results. ![]() A project budget is more than just money-it’s also a spending plan that guides you through the ideation, execution, and delivery of your project. ![]()
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