Project finance management. Project cost and finance management What does financial project management include

Date not set.

Workshop-workshop reveals the content of modern effective methods project management. Approaches to building a project management system in its interaction with strategic objectives and the challenges facing the company.
Also, the seminar is devoted to financial components project management, namely practical technologies financial management of commercial projects, project financing schemes, technologies for budgeting and financial control of projects, techniques for assessing the effectiveness and cost of a project, as well as the specifics of managing innovative projects.

The target audience

Seminars are intended for executives, managers and professionals involved in improving the activities of enterprises, banks, companies and groups; strategic and organizational development, interested in increasing the control and management of the company.

Target

The main attention is paid to projects for the improvement and development of the organization's activities, as well as practical technologies for goal-setting and project planning; building effective project team, distribution of responsibility and delegation of authority; project execution control, management project risks and changes in the implementation of projects.

Program

1st day

"Project management of development and improvement of the enterprise"

Project management of corporate development
Project concept. What goals and objectives are effectively implemented with the help of projects. How to draw the line between the current and project activities... Classification of projects. Approaches, standards and methods of systemic project management. Life cycle and project phases. The main objects, processes and procedures for project management.

Organization and project management
The main problems of project management in Russian companies... Project initiation. Goal setting and project planning. Development of a hierarchical structure of work. Building an organizational structure for the implementation of the project. Building network models and calendar plan project. Resource planning. Development of resource and financial plan project. Project implementation and control. Trekking, system of indicators and project reporting. Building and managing a project team. Typical roles and functions of project participants. Completion of the project. Motivation system for project participants.

Creation of a project management system in the company - PMS
Processes and organizational structure SOUP. Communication and interaction with the system strategic management... Planning, evaluation and ranking of projects. Accounting and distribution of project resources. Project office. Design regulations. Review and classification software tools project management.

Management of project risks and changes in project implementation
Project analysis and identification of project risks. Analysis, assessment and ranking of risks. Typical risk management strategies. Development of a risk management plan. Typical measures for managing changes in the implementation of project results.

2nd day

"Project finance management and investment design"

Financial planning of the project. Business planning. Investment design
Investment and commercial projects. Purpose and preparation of a business plan and other documents. Sections of the business plan. Errors and recommendations. Basic plans, reports, analytical charts for the project. Traffic plan Money... Profit and loss plan. Balance plan. Features of financial management of investment projects

Budgeting and financial control the project
Budget management scheme. Budgeting contours. Types of budget reports, allocation of income and expense items. The cycle of budget management. Financial Responsibility Centers. Implementation of budgeting.

Evaluating the effectiveness of the project.
Discounting and value for money. Capital structure and price, financing cost estimation. Indicators for measuring the effectiveness of the project. NPV. IRR. NCF. PI. PP. Analysis of indicators. Scenario analysis. Break-even analysis. Sensitivity analysis. Risk analysis and management.

Project cost estimate
Cost aspects. Basic approaches to cost estimation. Assessment methods. Assessment of individual elements of the project. The impact of the project on the value of the company.

Project financing schemes
Sources of financing. Financing schemes. Internal and external financing. Debt and equity financing. Long-term and short-term financing. Mixed finance. Specific financing schemes. Factors in choosing financing schemes.

The process of attracting external financing to the project
Project management cycle to attract external investment.

Features of management of innovative projects
Venture funding. The cycle of an innovative project. Forms of organization of implementation innovative projects... Protection and valuation of intellectual property.

Additional Information

Information materials:
The participation fee includes meals (2 coffee breaks, lunch), teaching aids and CD-1 Business Processes. Contains examples of models of business processes from various business sectors and information and methodological materials, as well as chapters of the book "Secrets of Successful Enterprises: Business Processes and Organizational Structure" corresponding to the topics of the seminar.

Only for the participants of the seminar there is a 15% discount on the purchase of the organizer book "Secrets of Successful Enterprises: Business Processes and Organizational Structure" and CD-solutions.

Location

Russia, Moscow, st. Hotel, 3 (metro Petrovsko-razumovskaya)

30. Project cost and financing management

Key definition

Project cost and financing management(Project Cost and Finance Management)- a project management section, which includes the processes necessary for the formation and control of the implementation of the approved project budget. Consists of resource planning, cost estimation, budgeting and budgeting, and cost control.

Body of knowledge

The project cost and financing management process includes:

□ Development of the concept of cost management and project financing:

Development of a strategy for managing the cost and finances of the project (defining goals and
tasks, criteria for success and failure, limitations (74 assumptions);

Economic analysis and project justification (marketing,
estimation of cost and sources of financing, forecast of implementation);

General economic assessment of the project;

Development of an enlarged financing schedule;

Determining the requirements for a cost and financing management system in
project;

Approval of the concept.

□ Project cost and financing planning:

Planning resources and determining how many resources will be needed for a successful
project execution;

Estimation of the project cost (based on the developed estimate documentation,
expert assessments and etc.);

Formation of the project budget,

Development of a financing plan that should correspond to the formed
project budget:

Development of a cost and financing management plan for the project.

□ Organization and control of project implementation at cost:

Distribution functional responsibilities and responsibility in accordance with
cost and financing management plan for the project;

Implementation of the project cost and financing management system;

Accounting for actual costs in the project;

Formation of reporting on the status of the cost and financing of the project.

□ Analysis of the state and regulation of the cost of creating a project:

Ongoing audit of the project status in terms of cost and finance;

Determination of the degree of project completion by cost indicators
(carried out based on the analysis of actual costs and estimated cost
executed works);

CHAPTER 1. KNOWLEDGE AND EXPERIENCE

Analysis of deviations of the cost of work performed from the estimate and budget:

Analysis of various factors affecting positive and negative deviations;

Preparation and analysis of corrective actions;

Predicting the status of the project work execution by cost;

Making decisions on regulatory actions to bring the work to be performed
the project at a cost in accordance with the budget.

□ Completion of project management by cost and finance:

Economic analysis and evaluation of results;

resolution of claims and conflicts;

Preparation of executive estimates and financial report;

Final calculations and closing funding;

Formation of the archive.

Main literature

Voropaev V.I., Galperina Z.M., Razu M.L., Sekletova G.I., Yakutia Yu.V. etc. Management of programs and projects / Edited by Razu ML. Module 8. In the 17-module program for managers "Management of the development of the organization." - M .: Infra-M, 1999 .-- S. 392.

Voropaev V.I. Project management in Russia. - M .: Alane, 1995 .-- S.225.

Mazur I.I., Shapiro V.D. and others. Project Management: A Reference Guide / Edited by AI. Mazur and V.D. Shapiro. - M .: graduate School, 2001. - P.875.

Ilyin N.I., Lukmanova I.G. and other project management. - SPb .: TwoTrI, 1996. - P.610.

Lobanova E.N., Limitovsky M.A. Financial management. Module 14. In the 17-module program for managers "Management of the development of the organization." -M .: Infra-M, 1999.

Guide to the world of project management / Per. from English - Yekaterinburg: USTU, 1998 .-- P. 192.

Archibald R.D., Managing High-Technology Programs and Projects. 2nd ed. -New York, NY: John Wiley & Sons, 1992.

Cleland D.I., King W.R., Project Management Handbook. 2nd ed. - New York, NY: Van Nostrand Reinhold, 1988.

ICB - IPMA Competence Baseline. Version 2.0. IPMA Editorial Committee: Caupin G., Knopfel H., Morris P., Motzel E., Pannenbacker O .. - Bremen: Eigenverlag, 1999. - p.l 12.

Ireland L.R., Quality Management for Project & Programs. - Drexel Hill, PA: PMI, 1991.

Kerzner H., Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 6 th ed. - New York, NY: John Wiley & Sons Inc., 1997.-p. 1200.

Projectmanagement - Fachmann. - Eschbom: GPM und RRW, 1991. - VI, V2, pp. 1130.

Turner J.R., The Handbook of Project - Based Management: Improving the Processes for Achieving Strategic Objectives. - Maidehead: McGraw - Hill, 1993 .-- p. 540.

Turner J.R., Grude K.V., Thurloway L. - The Project Manager as Change Agent. - Maidehead: Me Graw-Hill, 1996.

additional literature

Holt R.N. Fundamentals of Financial Management. - M .: Delo Ltd., 1995.

Holt R.N., Barnes SAT. Investment planning. - M .: Delo Ltd., 1994.

Features of financial management of government programs
To projects carried out within the framework of state targeted programs, as already noted, there are increased requirements in terms of transparency and the ability to control and account for use financial resources... These requirements are even more stringent if external investors, such as the World Bank, are attracted to finance the programs.
Each of the authorities that control the implementation of the program (investors, line ministries, etc.) brings its own requirements, standards and guidelines in the rules for the formation, execution and control of the project budget, which should be guided by the executors.
Another important feature of the financing of targeted programs is noted in the work. It consists in the fact that a one-year funding cycle is adopted for targeted programs, while the project budget should be determined for the entire period of its implementation, which corresponds to both the RBB methodology and the requirements of the World Bank, and, of course, the project management methodology.
These features have a significant impact on the processes implemented within the framework of target programs, and make us look from a slightly different angle at such basic tasks of project cost management as: formation of the budget for the program as a whole and for individual projects;
financing projects, including accounting for actual costs, receipts, reporting on the status of the cost and financing of the project; analysis and regulation of the cost of projects and the program as a whole, including conducting financial audits.
Let us consider the main processes within which the tasks of managing the cost of projects are solved as part of target programs.
Program budgeting
The main objectives of the project budgeting process are: annual determination of funding needs for specific areas of the project and calculation of planned project costs in the context of specific areas of work, executors and funding sources; formation of a project financing plan, describing the financial flows of the project, indicating the timing of receipt and expenditure of funds; formation of a project chart of accounts, which is the basis for authorizing project costs, cost accounting and financial analysis.
Funding requirements are determined based on an estimate of the cost of the resources required to complete specific tasks, taking into account the timetable. The resources to be planned in the project and taken into account in its budget fall into the following main categories: work time performers; financial resources; capital goods and production facilities; Equipment and materials.
The financing plan represents the requirements for the investor, detailed by cost items in relation to calendar periods. Based on this data, the funding plan sets the level of monthly (quarterly) program expenditures and the corresponding level of funding required for the implementation of all projects in its composition.

The chart of accounts of projects allows not only to formalize the procedures for accounting for project costs and harmonize them with the requirements of accounting and reporting, but also to define centers of responsibility for specific types of costs within the project.
It is necessary to distinguish three stages of budget formation: The preliminary budget is formed at the pre-contract stage for holding a competition or tender at the choice of the contractor. The framework budget is formed at the stage of concluding a contract and determines the entire volume of project financing. The annual budget is formed for each year of project implementation and determines the amount of funding for the planned year within the framework contract.
The basis for the implementation financial planning are the project plan and contractors' applications for financing the work in the planned year.
The preliminary project budget is formed in accordance with the requirements of the World Bank or other investor and determines all the main cost components by type of activity (see Table 6.6).
The framework budget of the project is formed in the form of a cost estimate as an annex to the price agreement protocol. The set of documents that determine the structure of the project budget may vary depending on industry requirements. For example, in accordance with the requirements and methodological recommendations of the Ministry of Economic Development and Trade of Russia, it includes: a price agreement protocol; cost estimate (see table 6.7); breakdown of costs under the item "Materials"; breakdown of expenses under the item "Special equipment"; breakdown of costs for items "Main wage"," Additional wages "," Deductions for social needs "; breakdown of expenses under the item "Travel expenses"; a certificate on the amount of overhead costs to the price structure; breakdown of costs under the item "Other direct costs"; breakdown of costs under the item "Costs for work performed by third-party organizations and enterprises" (the structure is similar to the cost estimate) (see Table 6.7).

Table 6.6. Project budget structure

Component prices	Price breakdown	Types of dey		telns 3 "	i - - Only 4!
Salary	Main state
	Local staff
	Consultants
	Total
Reimbursable costs	International flights
	Miscellaneous transportation costs
	Daily allowance
	Local transportation costs
	Rent of premises, housing, office services
	Total
Various costs	Communication costs
	Drawing up, copying of reports
	/> Equipment: cars, computers, etc.
	Software
	Total
Total

The annual project budget is formed in the form of an estimate of expenditures, similar to the estimate of the framework budget, with a breakdown of expenditures by quarter and month.
Financial analysis of the project
The purpose of the project financial analysis process is to monitor the implementation of the work plan and project financing to solve the following tasks: comparing costs with the envisaged budget and determining deviations from the budget; taking the necessary corrective measures when deviating from the budget.
Cost accounting is carried out on an ongoing basis both at the level of individual tasks and at higher project levels, including

Table 6.7. Costings

№	Name of expense items	Amount, thousand rubles
1	Materials (edit)
2	Special equipment (only for projects funded under the item "R&D")
3	Basic salary
4	Social contributions
5	Software (only for projects funded under the item "Other needs" or "Investments")
6	Overheads
7	Travel expenses
8	other expenses
Total
VAT (only for projects financed under the item "Other needs" or "Investments")
Total with VAT (only for projects financed under the item "Other needs" or "Investments")

at the project level as a whole. It is necessary to take into account the following types of costs: real direct costs (labor, materials, etc.) incurred in the current period; deferred expenses that are not yet reflected in the accounting documentation, but the need for which has already been identified; "Late" expenses, which include the costs of previous periods, for one reason or another (administrative errors, late submission of invoices, etc.) that fell on the current calendar period.
For financial analysis, information about the planned and actual states of the project and the project budget is used.
The result of the financial analysis process is the Report on financial analysis project containing the following sections: main financial indicators the project (such indicators can be, for example, well-known indicators of earned value);
necessary corrective actions, the adoption of which is in the competence of the project manager; proposed changes to the budget to be submitted to higher authorities.
Financial audit of the project
The purpose of this process is to verify that the project complies with the procedures and rules for financing project contracts.
The main tasks of the process are: accounting statements and payment and settlement documentation related to the project; confirmation of the reliability of the data contained in the reports and other documents of the project, identification of the facts of violation of the accounting procedure; verification of compliance with legal requirements when performing financial and business operations during the implementation of the project.
Carrying out financial audit the project is carried out with the involvement of an auditing company selected by agreement with the investor's representative.
During the financial audit of the project, the following are studied: documents related to the financing of project contracts; accounting documents.
The result of this process is the project audit report. Financial audits should be carried out annually and at the end of the project.
Financial report for Investor
The purpose of this process is to provide financial statements according to the project to the Investor.
The report should reflect the project costs at the project level as a whole and at intermediate levels of the work structure (project stages) and the ratio of real and budgeted costs.
The report should include the following information: information about the work performed and the projected amount of work;
actually spent financial resources and projected payments by type of costs; receipts and payments by sources of funds; comparison of planned and projected payments and receipts.
The report should also include projected deferred expenses not yet reflected in the accounting documents.
The initial data for this process are indicators of primary financial documents and information on labor costs associated with the implementation of project work. The result of this process is a quarterly (frequency may vary for different projects) report for the Investor.
An example of the structure of a financial statement is shown in Table 6.8.
Table 6.8. Project financial report form

FINANCIAL REPORT OF THE PROJECT
Name of the executing organization				Project manager: full name, e-mail
				Compiled by: DD.MM.YY
name of the project Project progress report with DD.MM.YY. by DD.MM.YY General description of the state of the project In this section, the project manager should give overall assessment project. 1. Execution of project stages
Stages	Sturg (flame / fact)	The finish (plan fact)	Current condition			Responsible		Cause deviations
Stage 1
Stage...
2. Execution of the budget of the project stages
Stages	Project chart of accounts		Plan		Fact		Forecast	Plan / Forecast
Stage 1	Materials (edit)
	Special equipment
	Basic salary
	Deductions for social needs
	Software
	Overheads
	Travel expenses
	other expenses
	Total Payments
	Total Receipts
	Receipts - Payments				-

colspan = "2">
Project chart of accounts

Stage...	Materials (edit)
	Special equipment
	Basic salary
	Deductions for social needs
	Software
	Overheads
	Travel expenses
	other expenses
	Total Payments Total Receipts Receipts - Payments		". ¦¦¦" L:			-
3. Execution of the project budget
Stages	Plan	Fact	Forecast	Plan / Forecast
Materials (edit)		Stage 1
		Stage...
		Total:
Special equipment		Stage 1
		Stage...
		Total; "- ¦ V
Basic salary		Stage 1
		Stage...
		Total:
Deductions for social needs		Stage 1
		Stage...
		, Total: .¦
Software		Stage 1
		Stage...
		Total:
Overheads		Stage 1
		Stage...
		Total:
Travel expenses		Stage 1
		Stage...
		Total: - ¦
other expenses		Stage 1
		Stage...
		Total:;	. .		¦ ~
Total Payments - -_- Total Receipts "¦" " "" ¦¦ ¦: ¦¦¦¦¦ "Receipts - Payments		Stage 1 -				‘
			-	.		-
		": Stage 1" --¦ - Sr Stage 1	, V - : : :: / V	-	-- -	- ---,----

Literature Scott G. Result-based management and public / private partnership // Mezhdunar. symposium “Project Management: Business. Ideas. Practice ", St. Petersburg, May 17-18, 2005 Ekluf J.A. Project Management in large socio ethical reform programs (with examples from swedish experience) // Mezhdunar. symposium “Project Management: Business. Ideas. Practice ", St. Petersburg, May 17-18, 2005 Samoshchenkov S., Soshnin A., Tsipes G. Programs and projects in the authorities government controlled// Sat. Proceedings of the IV All-Russia. practical conf. "Standards in projects of modern information systems», Moscow, April 21-22, 2004. M .: FOSTAS, 2004. Result-oriented budgeting: goals and principles. Eco-rice-NEI. 2002.16 p. (www.nei.ru) Performance-Based Budgeting: international experience and the possibility of application in Russia. Center for Fiscal Policy, 2002.59 p. (www.nei.ru) Poznyakov V, Project management in international organizations operating in Russia // Project management. 2005. No. 3 (3). Soshnin A. Application of project management methods in the preparation and implementation of federal target programs // Mezhdunar. symposium “Project Management: Business. Ideas. Practice ", St. Petersburg, May 17-18, 2005 Requirements and guidelines organizations - executors of government contracts under the Federal Target Program "Electronic Russia (2002-2010)". Ministry of Economics development and trade of the Russian Federation, May 31, 2004. Archibald R. Management of high-tech projects. M .: DMK Press, 2002. Tovb A., Tsipes G. Project management: standards, methods, experience. M .: JSC "Olymp-Business", 2003.

1. Project and project-oriented company, economic model.
   • Project (order) as an object of management. Stakeholders of the project. Investment and commercial projects. The goals of the customer and the project executor. Prioritization: timing, cost, quality.
   • The main indicators of the economic efficiency and financial stability of the organization, the levers of their management. The economic model of a project-oriented company.
   • Use of organization resources in projects: project costs and company costs. Areas of responsibility of the project manager and the head of the functional unit.
   • Estimation of the cost of project execution at full and variable costs. Methods for calculating the total cost, variance of fixed cost distribution bases.
   • Costing and accounting for use labor resources and fixed assets of the company in projects.
   • Ensuring the financial feasibility of the project. Sources of financing for the company and the project, the price of capital. Factors affecting the need for working capital.
2. Project cost management for different stages its life cycle.
   • Project life cycle: planning, implementation, completion. Financial management tasks and tools at different stages of the project life cycle: budgeting, accounting, performance optimization and control. Estimate and budget of the project.
   • Budgeting project costs: composition of items, forecasting methods, variability of cost estimates and recognition points for individual budget items. Optimization of costs for the procurement of raw materials and supplies.
   • Cost budget, income and expense budget, project cash flow budget in interrelation. Modeling the impact of management decisions of the project manager on economic efficiency project.
   • Monitoring and control of the budget at the stage of its execution. Earned value method as a tool for assessing the consistency of project costs and achieved results. Calculation of free funds for the project by the indirect method.
   • Project management reporting. Requirements for the composition of indicators and reporting forms. Relationship between project results and manager's motivation.
3. Calculation of the cost of the project and approaches to pricing.
   • Accounting and economic approaches to cost estimation. Relevant and irrelevant costs. Project selling price: strategic and tactical decision. Taking into account the market situation and the degree of utilization of the company's production capacities when determining the lower limit of the sale price of the project to the customer.
   • The price of money in time. Taking into account the terms of project financing by the customer when pricing.
4. Development projects (investment) - planning and evaluation.
   • Investment and operational phases of the project. Bringing non-simultaneous cash flows to comparable values, discounting procedure. The price of capital and the choice of the discount rate. Taking into account the terms of financing when evaluating projects with borrowed funds.
   • Indicators financial efficiency project: payback period, net present value, internal rate of return of the project, return on investment index. Comprehensive assessment of the project.
5. Project risks.
   • Methods for identifying and ranking risks. Qualitative and quantitative risk assessment. Risk response options.
   • Project risk management planning. Scenario budgeting as a risk management tool.
6. Financial management of a project-oriented company.
   • The types of company strategies and financial management objectives to support their implementation. The role of the financial and economic service in the organization of project activities.
   • Financial flows diagram. Balancing flows by project, by type of activity: operating, investment, financial.
   • Optimization of assets and sources of their acquisition. Analysis of aggregate financial result by the stages of its formation.
   • Planning and control levels, scorecard cascading. Internal management reporting system. Accounting policy for management accounting and budgeting. Tools for automation of accounting and budgeting in "project" companies.

Certificate of advanced training in the amount of 32 hours (license No. 3053 dated 03/07/2017).

To issue a certificate, you must provide:

• a copy of a diploma of higher or secondary vocational education (if you receive a diploma outside of the Russian Federation, please clarify the need for the procedure for recognizing a foreign diploma in the Russian Federation by contact phone numbers or e-mail)
• a copy of the document confirming the change of surname (if changed).

The participant's package includes:

• training according to the declared program;
• set of information and reference materials;
• excursion program;
• daily lunches and coffee breaks.

You can view the full program of the seminar and register for it on the website.

maybe corporate training (for employees of your company only) or special offers for corporate clients.

Lecture 5. Financial management of the current project

Once the budget and funding have been approved, the next challenge is managing revenues and expenditures and adapting to unforeseen circumstances and unexpected situations that may arise during the project.

1. What can you foresee before starting the project?

The more carefully you think through all the points at the beginning, the less likely there will be unpleasant surprises in the future. These include drafting legally sound contracts with suppliers and a clear plan for the use of all types of project revenues, as well as the ability to maximize high level pre-sales or pre-launch revenues.

1.1. Expense management

The advantage of drafting contracts with clear terms and conditions and fixed prices for the services of suppliers is that you will know in advance the amount of work and the cost of it. That is, instead of variable costs that are budgeted as they occur, you will have the final amount you have to pay for each contract.

One way to control fixed and variable budget elements— use color coding: green to highlight contractual and pre-agreed items, and orange to highlight— cost areas where changes are possible, for example, travel, accommodation, meals.

For those elements that are included in the budget, the indicated amount of expenses will be the maximum. Your task now— monitor expenses as they arise, and ensure that this amount is not exceeded. To do this, you need to organize the work so that people involved in the project submit reports on expenses (Template 4 - expenses claim form) accompanied by receipts and invoices. You need receipts as proof that the expenses really were. They may be requested as a cost justification by both your colleagues and the donor. For EU funded projects, there are established templates that must be used. According to the documents drawn up on their basis, auditors will be able to track the entire history of financial transactions. There may also be rules and regulations regarding what is “eligible” costs. For example, “Can I spend my grant money on alcohol at dinner? Can I state the amount of tips left to the waiter? " Usually the organization or the donor already has formulated standard requirements. You need to familiarize yourself with them and inform your colleagues who spend money and then plan to claim them for reimbursement from the budget!

Who finally approves reimbursement of expenses? One person should be responsible for approving invoices and payments. On the corporate level it could be you, as the project manager, or the head of the finance department. Most likely, your organization has already established this mechanism and you just need to double-check everything and start using it.

Another useful advice — ask suppliers who are involved in other projects in addition to your project to indicate on their invoices which project it was billed for (or, if necessary, provide a separate line for your project). You don’t want to pay for other expenses in addition to the costs of your project, do you?

Thus, you must develop a mechanism that allows you to:

Set the maximum allowable cost level for each expenditure part, and determine the results of the work for which funds are provided in this budget line (this information can be taken from the budget).

Check that all planned expenditures and outputs are consistent with financial transactions for contracts signed early in the project and variable cost invoices expected during project implementation.

For variable expenses such as travel, living expenses, travel expenses, make sure that the bill is received and approved in advance before the finance department can issue money. This saves you from unexpected or inconsistent costs.

Be aware of the deadline for submitting data on variable costs at the end of the month— because you don't want a situation where a team member hasn't reported spending for several months and you think you have unused funds. You redistribute them for other needs, and then suddenly it turns out that there are still outstanding expense bills.

Adhere to the established conditions regarding the maximum allowable expenses for hotel accommodation, dining in restaurants, etc.

When implementing the project, you will need to check whether the projected costs coincide with the actual ones. That is why you had to develop not only a budget, but also a financial flow.

The question is, how often should the cash flow be updated in order to timely make changes to the projected costs based on actual spending, and, in general, have an idea of ​​the real state of affairs? For long-term projects with planned and few measures, the financial flow will be sufficient to update once a month. If the project is in the middle of a period of saturated activity, then the update of the financial flow can be carried out weekly or every two weeks.

In Template 1 - budget and cashflowon the sheet with the financial flow, a column is provided for entering into it the amount of the difference between the projected and actual costs. It will allow you to see whether you are underspending or overspending on each line. For example, if you planned to spend £ 200 on insurance in January, and at the end of January you find that the bill has not been paid, then the actual expenses in January— £ 0. But you will also need to adjust the cash flow, taking into account the fact that these 200 pounds will be carried over to February when this invoice is paid. In this case, it just changed the month you incurred expenses, and the total difference would be 0, since you simply moved expenses from January to February.

For example, if you were planning to spend £ 500 on hotel stays in January, and when you see that the actual expenses were only £ 471 according to the reimbursement claims from your team members involved in the project, then the difference column would be show that you saved £ 29 in January. Thus, you have completed all the planned activities and spent less money.— bravo, great cost savings!

To facilitate the process of tracking expenses, you can enter all the transactions for your project into the financial accounting system that is available in your organization. If you work in a large organization, then this work can be organized by your CFO... If you work in small organization, then you can discuss with your director which mechanism for tracking finance for the project is best to use, and whether the existing one in the enterprise is suitable for these purposes software for accounting. Most online accounting systems, such as www. mycake. org (which is designed specifically for small creative companies) have this feature by default.

1.2. Tracking and increasing project revenues to maximum indicators

Most creative people find it more difficult to predict the exact income of a project than to plan for it. In fact, this is a completely different skill that is needed for those looking to work on large projects and in leadership positions.

But don't despair. One of the most popular phrases about marketing says: "In marketing, only half of the activities (to increase sales) are effective ... I wonder which one!"

This does not mean that marketing— these are sheer guesses. Not at all! You just need to work with your marketing team / agency / freelancers so that together you can predict and track how marketing expenses translate into ticket revenues and other types of project revenues. From this point of view, this online course does not address the issue of the impact of marketing on sales, but this skill is very important and should be mastered either on your own or by consulting a professional in this field.

Although this course does not cover marketing issues, I still recommend tracking the sales of the first days after the start of ticket sales, since your most loyal customers will purchase them first. If they haven't bought your tickets, then either your sales forecasts or your marketing budget should be revisited, as the situation is unlikely to change for the better over time!

1.3. Polite refusal of proposals of a corrupt nature

If you have been working in this area for a long time, then you probably came across situations when you were approached with proposals of a corrupt nature. How to evade them and at the same time continue your project, protecting your budget from adverse influences and retaining the ability to carry out all the planned activities for it?

My proposal may seem too simple (although this is far from the case), but I would recommend formalizing all obligations for all planned activities in the form of clear and rather strict contracts, and paying bills only for the work performed, stipulated by contracts, and within the corresponding (agreed) amounts. It is also better to agree in advance on such points as the maximum allowable price per day of stay at the hotel or the monetary rate for food and travel; or establish that you need to fly in economy class, not business class. In addition, you will definitely need to clearly stipulate what the final result should be for each of the contracts with suppliers, and if the subject of such an agreement is a material product (as opposed to contracts on the terms of hiring an employee), then you need to clearly establish the requirements for the level of product quality. that you purchase so that at the end you can compare the received and paid product with these requirements.

However, the good news is that having earned yourself a reputation as a pedantic and incorruptible leader, you will notice that the number of such offers will decrease significantly. If you accept even insignificant proposals or allow them to be accepted by colleagues in the project you are leading, then, most likely, this will continue, and the scale will only increase.

Thus, you can now:

tell friends

You must enable Javascript in your browser for the site to work optimally and to display the sections completely.