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26
Dec
2017

8 Reasons the Best in the Business Use Budget Management Software

Andrei Bernovski
by
Andrei Bernovski

26th December 2017

A study reported in MarketWatch showed that 88% of spreadsheets contain errors.

This could be something as “small” as 1 error in data entry or it could be a miskeyed formula that throws the entire sheet off.

In project management, we all know that the smallest, single error can make a big impact on your ability to deliver on budget and meet customer satisfaction.

That’s why the right budget management software is vital to project management.

Let’s explore why the most successful companies use this software.

Keys To Budget Management Software

1) Accuracy

As mentioned in the opening when you’re generating and managing a budget, accuracy matters.

Failing to account for certain expenditures or miscalculating your costs can lead to:

  • Unpaid hours
  • Over-spending unnecessarily
  • Unhappy customers
  • Stressed employees
  • Inability to meet project demands

The best in the business use budget management software because it significantly reduces the chance for human error and helps project managers identify and correct human error faster before the damage is done.

2) Better Manage the What-Ifs in Estimation

Every project manager has been in positions where they need to make decisions with limited information, especially during the bidding process.

Sometimes you may feel that you’re doing no more than making “educated guesses”. But these estimations aren’t to be taken lightly.

They’re often achieved by analyzing several sources of data, making some assumptions and then acting upon your conclusions. With traditional means, these estimates can take hours or days.

If you’re bidding on a project, this may even be before you get the job.

These estimations drive project success. Budget management software helps you easily compare different what-if scenarios, evaluate your client’s options and more effectively plan.

You don’t have to create convoluted spreadsheets and complete calculations of theoretical figures.

Budget software makes it fast and easy to estimate and consider your options so that you can make the smart decision for your clients.

The best of the best in business need to be able to make decisions quickly, but they also need to access to the information needed to make the right choice.

That’s why they use budget management software.

3) Up-to-Date Information for Decision Making

When you’re managing a project, it’s helpful to have your books up-to-date through last month or last week. But when you need to make a decision today, you want to know that you’re making it on the most current information.

The best in business always have their project books up-to-date.

Only when you know that you’re working with the most current budget information can you make objective decisions that save you money in the long run, not cost you more.

What was your latest materials expenditure? How much more do you have to work within that category? Can you afford to pay a little more for X, Y or Z line item?

Budget management software provides you with easy-to-read performance gauges so you always know exactly where you stand on:

  • Price
  • Cost
  • Profit

4) Enhanced Visuals to More Quickly Understand

According to Forbes, effective data visualization is one of features that set high-performing teams apart from the rest.

If you’re using a spreadsheet to manage your project budgets, you can create graphs and charts to quickly relay information. But with budget management software it’s built right in.

Project managers and their managers can quickly decipher information to know that everything’s on track or to spot trouble ahead.

5) Managing Multiple Projects

Many project management teams and leadership have multiple projects going at once. For these individuals tasked with budget oversight, being able to easily see where each of their projects stand at any given moment is vital to their success.

The best in business use budget management tools to effectively monitor multiple projects at once.

A single dashboard can provide them with a visual summary of the project. They can quickly focus their efforts on projects that need their attention.

Based upon the gauges set, they can receive alerts that help them keep everything running smoothly.

Enter various costs once and apply them across several projects to reduce data entry work.

6) Managing Timesheets

Advanced budgeting software automates your processes to reduce manual labor. One area that this is particularly true is in managing the time of those working on the project.

Set rules and alerts. Automatically update hours worked. Anticipate labor needs through state-of-the-art budget management software.

The best in business know that their employees and contractors are their most important assets.

They use these tools to more effectively manage teams while helping you keep costs within budget.

7) Ease of Adapting

Part of managing a project is adaptation.

A cost goes up? You adapt. Something takes longer than you anticipated? You adapt.

Projects rarely run from start to finish without some changes along the way. That’s why the person managing the project is so important.

The best in business do their risk analyses. They know that the only constant is change. And they use budget management software that makes shifting resources easy and painless.

They use software that allows you to update it once. And all of the duplicate entry and re-calculations are done for them.

8) Increasing Profitability

What does this all come down to?

If you can’t correctly estimate your costs, you can’t make a profit? If you can’t effectively track your expenses, you won’t make a profit?

The best in business recognize the importance of tools that automate and streamline the project management budgeting process.

They understand that the right tools help them win the contract, get the right return on their investment and earn those 5-star reviews from clients.

Budget Management Is Done Right with the Right Software

Industry leaders get it. They understand how important it is to run those what-if scenarios to formulate the right budget. They get the importance of up-to-date information and visual data.

To learn more about how we can help you be the best in business with the right budget management software, get started with a 14-day free trial.

Filed under Project management

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Andrei Bernovski

Andrei is a project management professional working with some of the world’s most renowned digital agencies and software development consultancies.

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