Before planning expenses, you need to specifically determine what exactly needs to be done within the framework of the project, i.e., understand the task.
Based on the plan, stages and tasks are defined, actions that need to be performed. It will be useful to communicate with the team and with the participants involved to develop a unified position on the issue of project implementation.
There are services, such as Notion or Monday Workdocs, that allow you to concentrate information for collaboration. These services allow you to summarize the opinions of participants and create a common understanding of the goals and objectives of the project.
At the first stage of budget why choose our service planning, actual costs are not estimated. A list of everything that will require expenses is formed.
Step-by-step development of a project budget
After analyzing the above list, it will become clear which points were left without attention. Perhaps there is insufficient information about available resources, or the scope of work on the project is not specifically defined.
Other project documents (construction schedules, risk registers, etc.) may be used to develop an accurate budget.
Step 2: Estimate your project budget
Estimating the cost of the entire project can be done after compiling a list of potential expenses. There are two ways to estimate the budget: "top-down" and "bottom-up".
In top-down budgeting, the overall budget is determined first. Then, the total budget is broken down into its component parts, i.e., smaller tasks and functions. In bottom-up budgeting, the costs of each component part of the project are estimated, then summed up to obtain the estimated cost.
It is necessary to decide on the methodology for assessing the project budget. It is possible to calculate the cost of all components in one way