A project budget is a detailed calculation of total amount and expenditures which are used to complete a project task. Generally the budget define the cost for material, labor staff, ongoing operating costs and other expenditures such as training and traveling. A comprehensive budget provides all information about the project budget to management so they can understand easily how and where funds will be expended and utilized over the time. The main purpose of project budget is to estimate total cost and controls cost project within approved budget. It also provides valuable data for resource management to achieve the stated aims of the project.
Budgeting for your project is important because it provides the basis for estimating and controlling the cost of project. It will assist you by measuring the project’s actual cost against the approved budget, other than this you can make required changes in the planned schedule by viewing the project budget template. A project budget template allows you to establish the main objectives of a project. Another advantage to having a project budget is that it will allow you to prioritize the different parts of the project. You will make changes according to that budget and will invest at the right place.
Once you created your budget on spreadsheet and the project starts you should check the budget regularly too see actual spending against your estimate budget by using spreadsheet. It is known as budget analysis or budget forecasting. It is good for you to come in little bit under budget than over the budget, check it clearly and review it frequently to ensure that you stay on track. Five steps you need to develop a basic project budget are; read your task list, estimate each element of project, write down all your estimates, add possibilities or taxes and at last get your manger and approved your budget.