What Is A Project Budgeting?
A project budgeting is determining some money for certain categories to run an activity or business. In the business sector, this is done by the project management team. To make an efficient budget plan, the details should be considered earlier. The manager and the team should decide what kind of event, activities or production process they want. By this way, they can find out what will be needed during the process. After that, the manager and the team will list down all of the requirement from equipment, material, human resources and so on. You can use our project budget template to clear up your mind and find the most needed thing to run your activity.
In a business matter, there are four ways a manager will estimate the project’s budget, which is parametric, analogous, bottom-up and top-down. Four of them are explained below:
Parametric Project Budget
This is an estimating technique which estimating the duration and cost of a unit. For example, Mira has been assigned to allocate budget for 1000 gallons of premium rum. She knows that after distilling in 10 hours she will get 250 gallons of premium rum. Then, she can take the cost of 250 gallons of premium rum with an estimated period. Then she multiplies it with four times of run to get 1000 gallons so she gets the estimated cost.
Analogous Project Budget
The analogous is determining costs based on the analogy. This technique can be used when there is limited information about the project details so it put you in difficulty to make a budget estimation. Therefore, a manager will look up the similar project, at least that close to it to see how much he/she can estimate. Indeed, this is not accurate but it works when there is no sufficient information.
Top-Down Estimating Project Budget
This is an approach which you always begins with the final product and then move back to see how much money have spent on a project or production. This type of method is valid because at the same time the manager can evaluate so the future budget will be more effective.
Bottom-up Budget Method Project Budget
This is a method of determining a budget plan based on the need of each department or segment. This is in contrast with the top-down budgeting which this method starts with a small component first. After that, it will move to the bigger project.
There is an advantage that this traditional method is accurate. Every department will have a moral responsibility when it comes to the budgeting process.
Why Do You Need Project Budget Template?
Our template is designed very flexibly that you can edit it for free. You can use any kind of budgeting method we have mentioned before. Besides, the templates come in excellent designs; simple and easier. Even though you are new on budgeting, you can download and use this template.
Besides, each of our templates can be used in any purposes, whether it is for business or non-profit organization. Get it now!