What is your biggest worry or concern when starting or handling a project? Well, budget issues are often at the top of the list. Will the available resources be enough? If not, how can we keep the project moving? How can we plan to ensure that our finances are sufficient to see the completion of the project? These are all valid questions that arise in project management.
In fact, according to a survey conducted on project managers, a staggering 90% of them stated that budget constraints have led to stalling their project
So, how can we address this challenge and reduce its impact? The answer lies in efficient budget tracking.
What can we do to make budget tracking easier?
Use a project management tool
Set realistic expectations
Break down your budget into smaller chunks
Be flexible
The first step in tackling budget concerns is proper planning, utilising both expertise and tools. Budgeting is a universal concern for organisations, regardless of their size or value. It's always advantageous to work within the set resources and strive for efficiency. However, budget constraints tend to hit small and medium-sized enterprises (SMEs) harder due to limited cash flow. Mishandling funds can affect other business operations and hinder the capacity to take on additional capital-intensive projects.
Therefore, leveraging tools that can assist in achieving effective budget management is essential. One such tool is Sync!, which allows you to set a budget for each project and provides features to help you stay on track. These features include the ability to tie milestones to specific amounts and access highly skilled talent at reasonable rates.
It's worth noting that 85% of all projects tend to go over budget. However, with proper awareness of potential risks and diligent budget tracking, project managers can tilt the odds in their favour.
The platform's feature of releasing payment only once work has been approved ensures that your money is well-utilised, preventing unnecessary expenses from engaging underperforming members.
So, tracking your budget allows you to understand how resources have been utilised so far and give you ample time for proper planning and seeking additional resources to keep the project running smoothly before it becomes inconvenient.
Empower your project success with Sync!
References
Valecia G. 10 Reasons Why Projects Go Above Budget. Retrieved from: Chron https://smallbusiness.chron.com/10-reasons-projects-above-budget-40886.html
Project Management Statistics: Trends and Common Mistakes in 2023. Retrieved from: TeamStage: https://teamstage.io/project-management-statistics/#:~:text=70%25%20of%20projects%20fail.,rate%20to%2020%25%20or%20below .
