Whether you call it project administration, project management or project accounting, it all boils down to the same thing: achieving your goals, ticking off KPI’s and delivering quality. Within the set time frame. Within budget.
With detailed project accounting, you will be able to get a profound insight into the finances of your projects. As a result, you know exactly what you need and you can manage them more proactively and effectively.
In a nutshell, it is all about skilful planning, control and accountability of:
- project costs and expenses;
- invoicing in response to project activities;
- time and money spent on deliverables;
- reporting and analysis;
- assets used and necessary for the project.
Having your project accounting in order offers many operational advantages. And financial teams benefit too:
- You can closely monitor the progress of individual projects from a financial standpoint;
- You avoid mixing up projects and always have an overview;
- You can make timely adjustments, for example to the number of hours spent on a project or the project budget.
Ultimately, project accounting is a strategic tool. Because it provides insight into the progress and potential of each project initiative. It directs resources to where they are most needed and helps to quickly identify bottlenecks and opportunities.
The key success factor? Control. Over the costs of a project. Over the time spent and over the tasks of the participants.
In-depth knowledge of project accounting and which tools are most appropriate for your organization will help you to gain control.