When a project is first getting off the ground it will be incredibly exciting. The planning stages, rather than being a burden, will be the most riveting part. It won’t just be the idea, getting people on board with it, having it estimated for it’s change prospects, but the planning of the finances will be front and center. Finances are perhaps the most important part of any project management initiative. Everything is just on paper unless you can fund it. Therefore the budget will kind of decide what can and can’t be done in any project. This is perhaps why so many project managers fear looking at their finances every week. How can you get over this and not run into budget deficiencies?
Finances don’t control the vision
So many project managers fear the financial planning side of their projects because they don’t want their vision to be decreased in scale and scope. Typically, this is something that many of us can relate to. We have big visions about our holiday plans, but when we look at our budget we find out we can only do half of the things we planned for. So, what do we do? We change our plans to fit our budget. But, this is not something you need to do with a project. Instead, you can have a ‘program of projects’. These are stages that are segmented into projects. A program of projects is where you divide the vision of what you want to achieve into smaller projects to help you get there step by step. So if you want to have a large software encompass your business, divide it into projects whereby you go from department to department slowly installing it.
Get some help
If you can’t get over your fear of financial planning for your project, then get some professional help in the form of Accountants. It’s easier when you have a professional accountant by your side, to plan your budget both in short-term and long-term. Bookkeeping is perhaps the most important thing about projects, as you want to know how much of your budget is being used daily so you can plan for the future days and weeks left of the project. If you need to get estimates of costs, track expenses and get detailed reports of project so you can feel more confident as to how well you are using your funds and how responsible your employees are too.
Delegate reporting responsibility
Rather than having to gather financial documentation yourself, delegate this responsibility to someone in the team. They will need to go around to the employees and teams involved in the project, gathering financial reports and documents that will be compiled for weekly or monthly budget reports. This can be delegated to team leaders or just one person of your choosing.
Don’t fear the financial management of your project, without it you cannot hope to effectively deliver your project outcomes. Get some help, whether professional or from your own team.