{"id":61280,"date":"2022-03-21T15:14:28","date_gmt":"2022-03-21T20:14:28","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=61280"},"modified":"2026-04-28T14:49:23","modified_gmt":"2026-04-28T19:49:23","slug":"create-manage-a-project-budget-using-software","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/blog\/create-manage-a-project-budget-using-software","title":{"rendered":"How to Manage a Project Budget with Project Budgeting Software"},"content":{"rendered":"

Whether you\u2019re a numbers person or not, as a project manager, ownership of a budget is usually a key part of your job responsibilities. Creating and managing a project budget can be a daunting task, but it can be easy if you use the right project budgeting software.<\/p>\n

Projects can have several different types of costs that all need tracking in order to ensure that everything comes in under budget. All of those moving parts and fluctuating costs can be better tracked with an online project management software like ProjectManager.<\/p>\n

We offer you tools that simplify project budgeting and cost management, enabling you to set a baseline, track labor rates and add new costs on a task level. With these features, you can simply update and add items as they arise throughout the project.<\/p>\n

ProjectManager<\/a> is cloud-based software that allows you to plan and track project costs in real time. You have the tools to build an accurate budget and set a baseline to monitor project costs and resource rates with our real-time dashboard. Get more control, data and visibility for your project and budget. Get started with ProjectManager today for free. Now, before we learn how to use project budgeting software, let\u2019s define a project budget.<\/p>\n

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ProjectManager has real-time dashboards to monitor project costs. Learn More!<\/strong><\/a><\/figcaption><\/figure>\n

What Is a Project Budget?<\/h2>\n

A project budget<\/a> is how project managers estimate the cost of completing a project. This includes every phase in the project and each of the many tasks that make up those project phases. The accuracy of the budget forecast is critical to delivering success and making sure your project is approved and funded when needed.<\/p>\n

Another aspect of the project budget is monitoring costs as you execute your tasks. Without a clear window into your expenditures, it is easy for costs to get out of hand. This is a complicated process, but one that is improved with the use of project budgeting software.<\/p>\n

This tool needs to show real-time data, however, to track costs as they happen, to give project managers time to make adjustments as needed to keep to your budget. Let\u2019s take a moment to look at the importance of using project budgeting software.<\/p>\n

Why Should You Use Project Budgeting Software?<\/h2>\n

Project budgeting software is an essential tool for creating an accurate budget and then tracking costs as you go through the life cycle of the project. It allows you to plan budgets and control them by tracking expenditures. Therefore, they assist project managers through the entire budgeting process.<\/p>\n

Not only that, but using project budgeting software gives stakeholders<\/a>, executives and managers access to the budget and how it is being spent over the course of the project. You can budget your project with spreadsheets, but they are cumbersome and static documents that are hard to update.<\/p>\n

Most project budgeting software is online and updates as your team updates their statuses. This provides managers with real-time data that allows them to make more insightful decisions as they manage the project budget. When you\u2019re making and managing a project budget, you live and die by the accuracy of your numbers. Project budget software keeps you on top of what you\u2019re spending to bring in your project without going over the budget.<\/p>\n

How to Create a Project Budget in 3 Steps<\/h2>\n

The key to creating a project budget is to make all the line items easy to track. If you can apply a straightforward process to project expenses, then you can monitor the spending on a project accurately and in a timely manner.<\/p>\n

Follow these simple steps for building a project budget<\/a> that will set you up for success.<\/p>\n

Identify Expenses<\/h3>\n

The first step in creating a budget is to identify expenses. You need to list every single thing that\u2019s required to bring a project to completion. This includes wages for labor, equipment, materials and more. You\u2019ll want to examine your project plan<\/a> thoroughly and identify expenses on your own to start.<\/p>\n

Then, your team members might be able to help you recognize certain expenses that you didn\u2019t recognize immediately, so be sure to ask them to look over your expense list when creating a budget. You must list absolutely every expense. The more you identify, the less you\u2019ll be surprised by unforeseen expenditures later in the project.<\/p>\n

Estimate All Costs<\/h3>\n

Now estimate every item on your list. If your list is in ProjectManager<\/a>, you can add your estimate to the line item immediately. There are a number of strategies that you can use to do make your estimates. The most common estimating techniques are:<\/p>\n

Bottom-Up Estimating:<\/strong> Start with the components of each task and then add them up
\nExpert Judgement:<\/strong> Ask experts on your team to work out the cost of a task
\nAnalogous Estimating:<\/strong> Use past experience to judge how much the project tasks will cost this time.<\/p>\n

Add up all of the estimates. This gives you the total planned budget for the project, covering the cost of every task. Our estimate template<\/a> can help you do that.<\/p>\n

Add in the Extras<\/h3>\n

Extras? What extras? Well, the cost of each individual task isn\u2019t going to be enough, unfortunately. You still might want to add:<\/p>\n