Budgeting is often a manager’s central task because it allows to plan and control how a company uses its limited resources by making sound financial decisions and having good visibility not only on spending but also on saving opportunities. The latter being something of increasing importance for IT departments. Generally, IT represents a small portion of a total enterprise operating expenses and revenues, and its real business value now comes from reducing total costs, often by automating business processes.
Staying focused on the long-term financial objectives while being prepared for emergencies is critical for any company. But this does not come without taking risks. Companies invest thousands of dollars into improving their business processes and systems every year. This necessitates having good visibility on all types of costs, whether fixed or variable, current or future. In the EDI and IT world, projects usually involve implementation costs, support, maintenance costs, and on-going costs that depend on the project’s nature and scope. They all need to be forecasted and communicated beforehand by the service provider to the investing customer. In any case regarding costs and project quotation, Vantree could not put more of an emphasis on transparency for its partners and customers’ satisfaction.
Usually, budget management begins with preparing the budget, meaning building a detailed and functional account considering its goals. Then comes the financial analysis, where a department’s financial health is thoroughly understood to make an informed decision regarding an investment. And finally, the last step is a forecast, in which the manager builds expectations about future performance.
Budget management is, therefore, key in planning for your projects’ success and requires expertise in accounting, financial auditing, and specific skills in business administration or contract negotiations. This set of skills allows for better preparation and monitoring. It is not surprising that almost all project managers say their worst fear is to go over budget. Assessing the risks while securing visibility on spending is their top priority and rigorously managing an account is their only option.
As a project manager, do you ever feel like you are not getting enough out of how much you invest in automating your operations? Vantree truly believes in high-value, cost-effective business solutions that will not break the bank.