Smart Tips For Preparing a Budget in MS Project

Knowing how to use Microsoft Project is only the most basic level of proficiency with the software. Advanced MS Project users have a clear understanding of all aspects of project management, which means a comprehensive knowledge of the small details. For example, to create an accurate project budget managers have to understand the three fundamental types of costs.

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Fixed Costs

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Fixed costs are the easiest budget items to understand and predict. Any resource that will cost the project a fee regardless of how frequently it is used or how long it will take is a fixed cost. For example, a contractor who charges a flat fee to produce the documentation for a new piece of software is a fixed cost.

Since these resources incur the same charge regardless of use they are easy to predict without advanced MS Project experience. Even if the project runs well past its completion date, these expenses won't increase and this part of the budget will remain stable.

Project can add fixed costs at the level of tasks, summary tasks, or even the entire project. Project automatically totals the costs of each sublevel in the hierarchy allowing the manager to easily see how these expenses will impact the project.

Per Use Costs

Any resource that incurs a fee each time it is used is a per use cost. Say a company is conducting water quality testing and contracting with an outside laboratory to analyze the samples. The lab charges a fee per sample, creating a per use cost.

The manager has to predict how much a resource will be used in order to create an accurate budget. Continuing the example above, if the company knows there are 100 wells to sample then the manager knows to budget for 100 lab tests. On the other hand, if there is provision for retesting wells that show contamination to verify the results, the manager must estimate how often this is likely to happen.

Advanced MS Project techniques allow the software to automatically track these expenses on the resource sheet.

Resource Rates

Any consumable resource such as fuel or building supplies will fall under this category. Employee hourly wages will also be included here as will any other expense that increases the longer it is used.

These are the hardest budget items for even advanced MS Project users to predict. This can be complicated further if the rate fluctuates, such as employees who get overtime after exceeding forty hours per week. If the project completion date exceeds the original estimate, resource rates are likely to be the largest budget increase.

As a project manager gains more experience, more accurate estimates of all three types of budget items are possible. Properly accounting for them in the Project software will make it easier to predict the cost impact of changes to the job.

Smart Tips For Preparing a Budget in MS Project

Author is a freelance copywriter. For more information on advanced ms project, visit http://www.MicrosoftTraining.net/.

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Setting Your Small Business Budget

Most people have a sense of dread when they hear the word "budget" and imagine something restricting and impossible. As a small business owner, it's important that you understand how to set a budget and stick to a budget. Having a budget for your small business is essential. Without a budget, your expenses will outpace your income and you'll lose all your profits.

It doesn't a take a rocket scientist to figure out that this is no way to run a business! If you want to maintain your profits, you've got to:

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1) Increase your income

OR

2) Decrease your expenses

Although it would be nice to instantly increase your income (and if you find the secret to that, please let me know!), most small biz owners need to decrease their expenses. Lowering the costs of doing business is the easiest way for you to get more profits.

There are a lot of ways that you can cut down on your business expenses. Check out these ideas and save some money (and automatically increase your profits)!

One of the biggest areas that business owners go over budget is with software. New software makes us feel professional...and it's just plain fun! Even if you don't exactly need it, software can make its way on to your computer.

Before you download that next program ask yourself how it's going to help your business. Is there a way you can do the same task without the piece of software? Will it really help your business or will it just be a waste of space on your hard drive? If you feel it will really help your business then earn it! Earmark a certain amount of money from your profits to spend on your software and then buy it once you've gotten the money. That way you won't be cutting into your profits significantly or spending before thinking about it.

If there's a software program that you really do need, try to find the smallest version you can get your hands on. Many pieces of software have levels of use. For example, there is database software that can handle hundreds of users and there is a version that is for personal use only. Even if your vision for your business is huge and you imagine that you'll have dozens of employees someday, you don't need the full fledged version right now. You won't be saving money by purchasing it now. You'll be wasting it.

Tell yourself you can always upgrade when the time comes. You don't need to spend the money right now...you have more important things to spend it on! Be strong and put yourself on a software ban. You can be creative and find other ways to get your tasks done without breaking your budget.

Setting Your Small Business Budget

Tricia Mischler is a home business coach and owner of The Blue Jean CEO, the definitive resource for new entrepreneurs. To learn more about starting your own successful business, visit http://www.thebluejeanceo.com and pick up a copy of your free report "7 Biggest Mistakes New Entrepreneurs Make When They Get Started."

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