Project Management and financial planning (calculating costs, project budgeting, contracting funds and financial control) are two interrelated processes that are necessary to drive a project towards its successful completion. Project management includes financial control as one of its critical functions undertaken by Project Office on behalf of the project’s sponsor/owner who wishes to make sure that their funds are used properly and no unforeseen or unjustified overspendings take place. Project Management performs financial tracking function during the project execution to assure that budget is accurately met, all ongoing bills payable and receivable are closed, and funding is released according to schedule. It is performed regularly by project executives to inform the project sponsor on how finances are used on the project (so that if any problems are detected they could be properly handled). Project Management financial analysis is performed in a form of project post-completion audit to collate financial records and documents, to archive and systematize them, and to disclose any possible issues. PM and financial management can be brought together in single software such as one represented below:
VIP Task Manager is a project management product for SME, and it can be used by project managers for planning and controlling project costs along with progress over the working plans in order to identify their evolution or defections in terms of time, categories, etc.
For effective managing your project in terms of costs and tasks – do the following:
- start your project management software;
- organize your project on the Task Tree view;
- plan and schedule your project tasks in terms of their time, costs, etc;
- assign tasks to employees and track their performance;
- analyze results via using Filters, Footers, Custom Fields to know if your project meets the financial plan;