What is Budget Management in the PPM module?

Profit.co provides an option for users to keep track of the Budget in the project portfolio module.

Why this feature?

• The Budget and Expenses sections help track spending and maintain profitability by defining billing types, setting limits, and monitoring expenses, ensuring projects stay within budget.
• The Summary section provides a quarterly financial overview, enabling quick assessment of a project’s financial health, helping identify discrepancies, and aligning with business goals.

Budget management

Effective budget management ensures financial resources are allocated wisely. This includes defining the billing type, setting budget limits, and tracking expenses to avoid overspending and maintain profitability.

Step 1

To create a budget for your project, click on the Project, and in the project overview section, switch to the Financials tab.

Here, you will see three main sections:

1. Budget

2. Expenses

3. Summary

Step 2

1. Budget:

The Budget section allows you to define the billing type for your project. You can choose from three billing options:

• Fixed Price
• Time & Material
• Mixed

1. Fixed Price

The total cost, timeline, and scope of work are agreed upon before the project starts.

Key Features:

• The client pays a predetermined amount, regardless of the actual time or resources used.
• Suitable for projects with well-defined requirements and minimal changes expected.

2. Time & Material

Billing is based on the actual hours worked and materials used during the project.

Key Features:

• Offers flexibility for projects where requirements might evolve over time.
• The client pays for the resources utilized during the project.

3. Mixed

Combines elements of fixed price and time & material billing to provide a hybrid approach.

Key Features:

• Fixed-price components for predictable aspects of the project.
• Time & material billing for sections requiring flexibility and adaptability.
• Select the appropriate billing type based on your project's requirements.

Step 3

Expenses:

This section allows you to see a detailed overview of all your project-related expenses. This section helps you track your spending and ensure that everything is aligned with your budget.

Note: You can enable or disable automatic number generation for project expenses under Settings → Projects → Number Generation.

To access the Expenses section, navigate to the Expenses tab and click on the +Add Expense button.

On the Add Expense side panel, enter the Name, Category, Expense Date, and Amount Spent. Once done, click the Add button.

Step 4

Summary:

This section allows you to see the overview of your project’s financial data presented in a quarterly breakdown. This high-level view provides a quick snapshot of how your budget is distributed across each quarter and whether you’re on track to meet your financial goals.

This summary helps you easily assess the project's financial health, identify any potential discrepancies, and make informed decisions to stay aligned with the allocated budget.