We must rely on it whether we manage projects on our own, or with a small team, or with existing facilities. The monthly budget for projects is a very simple financial plan for the project that some ignore, but it is very important and makes us on the right path to manage the project and reach a distinctive return of profit.
Basic Equation
Profit is equal to revenue minus expenses.
When the profit is positive, we will have made the appropriate profits, but if the profit is negative, then it means that the project is subject to lose.
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Revenues
All sources that enter the project for a specific period, maybe a month, a year, or a longer period than this, and it reflects the quantity sold of products times the sale price.
Expenses
It is divided into two types, and they are called costs. There are fixed and variable expenses and fixed expenses are the ones that do not change whether there is a shortage or an increase in the number of products sold, while variable expenses are those that change with demand, such as employee salaries and reforms. Maintenance and other things
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The Difference Between Revenue and Expenses
There must be a study for all aspects of the monthly budget for projects so that we can increase the quantities sold, and search for things that help reduce expenses, but at the same time, there is a constant level of quality of services and products.
Monthly Budget for Projects
Project owners depend on it, and this financial plan can be obtained through the Internet, as there are ready-made templates for the monthly budget.
Basic Tables
The basic tables of numbers, both for the estimated and actual columns, and we fill in the estimate, which is the forecast for that month of revenues and expenses, and at the end of the month, we fill the actual.
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Items for Monthly Budget File
Three Main Tables
Monthly budget revenues for projects, which means profits from total revenues minus expenses
Income, which means all sources of revenue that enter the project.
Employee expenses include all expenses, whether of fixed or variable types.
Primary Table
Estimated, which the project owner expects from the sources from revenues and expenses that occur during the month
The Actual
Revenue and expenses until the end of the month
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The Difference
It is the product of the estimated minus actual subtraction.
The Most Important Tips That Help A Successful Monthly Budget
Personal account and project account so that there is no overlap between them, and we are not able to succeed in the project’s monthly budget.
We can understand the reasons if the monthly plan recedes, and there is support for the project for advancement and success.
Keeping bills and bonds, because it is performed by a set of data that we need.
When we use a template from simple Excel files to make a monthly budget for projects, the goal is not the shape of the template, but the goal is to get a budget plan and all the data is written inside so that we can benefit from it in this financial plan that is driven by a goal, ambition, or success.
Also read: The Importance of Commercial Law
