What is a project budget?
A project budget is a master plan that tracks the necessary expenses to run a project effectively. The purpose of a project budget is to help teams:
Track an entire project budget
Control operating expenses
List all your operating costs in their specific categories
Done effectively, project budgeting gives project managers more accountability by:
Identifying when projects go over or under budget
Revising project roadmaps and timelines accordingly
Adjusting forecasts and calculating more realistic ROI
Project budgeting creates cost estimations and structured budget plans that help you control cash flow. It helps you plan ahead so you can use your resources cost-effectively to reach your project goals.
When to use the project budget template?
The project budget template organizes all your project expenses throughout the timeline of the project. It’s helps you to:
Transition from analog to digital workflows in cost-efficient ways
Coordinate numerous tools and programs while reducing waste
Create standard collaborative workflows with outside contractors
Improve productivity and effectiveness while controlling expenses
The project budget template can be applied to virtually any industry and organization. For example, suppose your organization is tied to the public sector and is highly accountable for every dollar spent on operations. You can use the template to track how much capital is spent on a project-by-project basis and maintain full transparency and accountability.
During quarterly reviews or annual budget planning meetings, you can provide clear and concise updates to executive stakeholders. This makes it easier to receive buy-in if you need to make new investments in things like new office equipment, marketing campaigns, or team building activities to boost morale.
How to use the project budget template
The project budget template helps you organize your cash flow with specific expense categories: budget requests, logged expenses, under budget, over budget, and needs review.
You can also add custom fields to your template that calculate:
Your total project operating budget
Percentage of the project budget you’ve spent
Remaining budget after current expenses
Ultimately, the project budget template makes it easier to manage resources and control expenses for your organization.
Step 1: Create cards for each operating expense
In the relevant section of the project board, create a Task for each expense (IT system upgrades, office renovations, employee training programs, etc.). To do this, simply click the + icon in the “Budget requests” section.
Next, assign the expense to a project using tags. You can edit and add new tags directly in your task. Just click “Tags” and “Manage” in the right sidebar. With your projects assigned, include the budgeted amount of the expense in the “Total budget” field in the task.
Once the expense has been approved, move the task into the logged expenses' section. Update the tasks as needed with information about the project and how the budget is spent.
Step 2: Manage your budget
Manage your budget by providing status updates on the project’s progression. Move the task to the under or over budget columns, depending on the final cost.
If the expense is under the assigned budget, update the card with project details, reporting the reduced cost and impact on the project.
If the expense is over the assigned budget, update the card with project details, reporting the increased cost and impact on the project.
Step 3: Reassign budget based on performance
Adjust expenses as required based on project performance and resource availability. Determine if the expense requires additional review in a money-for-value audit. If so, move the card to the needs review column.
Use this information to make informed decisions about how to manage your budget moving forward.
Step 4: Encourage your team to share feedback
Ask your team for insights on how budgeted expenses are impacting project progress. This will help you to identify improvements to both the budgeting process and budget allocation. Consider adding new sections to the template to address specific challenges or opportunities.
Learn more about project management with MeisterTask.
