October 18, 2022
If you’re working in a company that manages projects, you will have to create a project budget now and then. A project budget is a document that lists all the expenses related to the project so that you know how much money you can spend on it. Unfortunately, creating one of these documents isn’t as easy as it sounds.
There are many different variables that need to be taken into account when creating a project budget, and they can be tricky to track and understand. Thankfully, there are plenty of different free project budget templates available online that should make this process easier.
This article will explain what a project budget template is, how to create a budget template for projects, and much more.
A project budget is an estimate of the costs required to complete a given project. More specifically, it’s an overview of the cash flow for your project where you account for all the money you will spend as well as all the money you expect to earn from that project. A project budget lists all the expenses related to the project so that you know how much money you can spend on it.
A good project budget should be detailed and include information about the amount of money you expect to earn from the project, when those earnings will be received, and what the project’s monthly profit margin will be. Project budgets are often used to determine whether a proposed project is worth pursuing. This can be done by comparing the estimated budget of the project to the expected profit it will produce.
A project budget should include a number of key pieces of information pertaining to the project, the finances involved with the project, and other information about expenses and expected profit. Project budget templates can be useful for keeping track of this information.
Project budgets differ from company to company, but in general, there are a few things that most project budgets should include.
Most project budgets include the following information:
· Project start and end dates
· Project milestones
· Cash flow projections
· Budget line items
· A budget summary
· A budget impact statement
· A Profit forecast
Some project budgets will include additional information, such as credit facilities, information about the project stakeholders, and so on, but almost all project budgets will include the data listed above. Also, most project budget templates will have sections for each of these things, so you only need to enter the values.
The best way to write a project budget is to first create a project breakdown. This is a list of all the tasks related to your project and the amount of time each task will take. You can break down this list into smaller chunks as needed. This will make it easier to track everything.
Once you have your project breakdown and estimated time for each task, you can add up the time for each task and use that information to estimate the total cost of your project. Next, add a safety margin for each item so that you can account for unexpected changes and delays.
Creating a budget template for projects can sometimes be difficult. But, if you follow these steps you shouldn't have any trouble creating an accurate and easy-to-use project budget template in Excel.
Follow these steps to create a project budget planner in Excel:
1. First, create a spreadsheet that tracks all of the expenses related to the project. Include a section for the budget, the actual amount of money spent, and the difference between the two.
2. Next, create a spreadsheet for all of the expected revenue for the project. This should include the amount of money you expect to earn as well as the date you expect to receive it.
3. Now, copy and paste this information from the two spreadsheets into a master budget spreadsheet. This will help you keep everything organized and in one place.
4. Finally, add the expected profit for the project by subtracting the amount of money you expect to spend from the amount of money you expect to earn.
After you have added in all your financial information, you can move on to adding additional information if you want. You can include info about the stakeholders, financers, shareholders, and company contact information.
If the project budget is internal then you can exclude this information, but if you are using the project budget to seek credit or financing for the project then this sort of information will likely be mandatory.
If you want a simple project budget template, then you can always download one from LiveFlow. LiveFlow is the premier accounting platform that helps automates the most complicated budgeting tasks. With helpful tools, such as the new Live Budget vs Actuals tool, LiveFlow can help you save time, money, and stress. You can even explore all of the great features of LiveFlow with a free 30-minute demo, so be sure to try LiveFlow today.
Check out our project budget template below:
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