Once a budget has been created, it is important to closely monitor actual spending in relation to the initial estimate. Although this is an accounting task, it needs to have a timely reporting mechanism to inform management if overruns are going to happen. This is a simple way not to fall to overspending, which some companies did not anticipate to happen.
How do real costs relate to those incurred throughout a project?
- Thread starter Shavkat
- Start date
In my own business, whenever I have made a budget and released funds to the departments that are in charge of their own project, they are not getting extra funds to finance a project when I have already made provisions for the initial money the budget presented.
This is unfair. In budgeting, you have to give room to shocks. What if something happens and the funds budgeted can't complete the task. What do you do?
