{"id":7325,"date":"2022-02-15T10:00:09","date_gmt":"2022-02-15T16:00:09","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=7325"},"modified":"2026-07-17T15:07:42","modified_gmt":"2026-07-17T20:07:42","slug":"how-to-track-project-expenses","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/training\/how-to-track-project-expenses","title":{"rendered":"Project Expense Tracking: 6 Ways to Track Project Costs"},"content":{"rendered":"

Projects cost money and therefore demand project expense tracking. Being able to manage and track expenses is what keeps the project within a budget. Stakeholders are not likely to consider the project a success if it costs them too much. Remember the triple constraint: cost, scope and time. You have to manage all three, giving and taking from one to the other.<\/p>\n

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

A project expense is the cost of what you need to complete a project. You need to cover all the expenses associated with your project before executing that project. This occurs during the project planning phase when you\u2019re developing a project budget.<\/a><\/p>\n

There are two main types of expenses that you need to know as you track your project costs. They are direct expenses and indirect expenses. Direct expenses for your project are those that are directly tied to the project, such as specialized software, contractor hours, travel and meal expenses, mileage, etc. Note that direct costs can be fixed or variable.<\/p>\n

Indirect project costs are those that aren\u2019t linked to the project. These expenses still must be paid. They are important as often project managers will overlook them when setting rates or creating bids for projects. Some examples of indirect costs include rent, support staff salaries, utilities, software licensing fees, advertising and promotion, office supplies, accounting and lawyer fees, etc. Indirect costs can also be fixed or variable.<\/p>\n

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Get your free<\/p>\n

Project Budget Template<\/h3>\n

\n\tUse this free Project Budget Template for Excel to manage your projects better.<\/p>\n\t\t