You will find all financial tables, statements and metrics tailored to your project in our list of 200+ financial plans
All our financial plans do include all financial tables, statements and metrics.
How can you easily track your project's financial health without getting overwhelmed?
In this article, we provide a free tool to do so. If you're looking for something more tailored to your specific project, feel free to browse our list of financial plans, customized for over 200 different project types here.
We'll also address the following questions:
What are the most important financial metrics to monitor for project health?
How frequently should the financial status of a project be reviewed?
What is the typical percentage of budget overrun in project management?
How can software tools help in simplifying financial tracking?
What is the standard cost performance index (CPI) for successful projects?
How much contingency budget should be set aside for unexpected expenses?
How much time do project managers usually spend on financial tracking each week?
The document available for download is a sample financial forecast. Inside, you'll find the calculations, formulas, and data needed to get a financial dashboard.
This document, offered free of charge, is tailored specifically to the realities of running a restaurant. If you need a tool for your own project, feel free to browse through our list of financial forecasts.
If you have any questions, don't hesitate to contact us.
Here Are the Steps to Track Your Project's Financial Health Easily
To skip all these steps, you can simply download a financial forecast tailored to your industry.
- 1. Define Your Budget Categories:
Break down your initial budget into key categories relevant to your project. For example, if you are launching a mobile app, you might allocate funds to development, marketing, and miscellaneous expenses.
- 2. Create a Financial Tracking Sheet:
Set up a simple financial tracking sheet using tools like Excel or Google Sheets. This sheet should include columns for budgeted amounts, actual spending, and variances for each category.
- 3. Allocate Monthly Budgets:
Distribute your total budget across the project timeline. For instance, if your project lasts six months, allocate specific amounts for each category on a monthly basis.
- 4. Track Actual Spending:
Regularly update your financial tracking sheet with actual spending figures. Compare these figures against your budgeted amounts to identify any variances.
- 5. Set Up Alerts for Overspending:
Implement alerts for when spending in any category exceeds a certain threshold, such as 10% over the budgeted amount. This helps you address issues promptly.
- 6. Review and Adjust Monthly:
At the end of each month, review your total spending against the planned budget. Make adjustments as necessary to ensure you stay on track for the remainder of the project.
- 7. Focus on Key Metrics:
Concentrate on key financial metrics such as total spending, category-specific spending, and variances. This helps you maintain a clear and manageable overview of your project's financial health.
What Should Be Included in a Financial Dashboard?
Here are the key elements that should be included, all of which you will find in our financial forecasts tailored to 200+ different business projects.
| Element | Description | Importance | Frequency of Update |
|---|---|---|---|
| Revenue | Total income generated from sales or services. | High - Indicates business performance and growth. | Monthly |
| Expenses | Total costs incurred in the operation of the business. | High - Helps in managing and controlling costs. | Monthly |
| Net Profit | Revenue minus expenses, indicating overall profitability. | High - Key indicator of financial health. | Monthly |
| Cash Flow | Net amount of cash being transferred in and out of the business. | High - Essential for understanding liquidity. | Monthly |
| Accounts Receivable | Money owed to the business by customers. | Medium - Important for managing credit and collections. | Monthly |
| Accounts Payable | Money the business owes to suppliers and creditors. | Medium - Important for managing debts and obligations. | Monthly |
| Budget vs. Actual | Comparison of budgeted figures to actual performance. | High - Helps in tracking financial performance against plans. | Monthly |
| Key Performance Indicators (KPIs) | Specific metrics that indicate the performance of various aspects of the business. | High - Provides insights into specific areas of the business. | Monthly |
| Financial Ratios | Ratios such as current ratio, quick ratio, and debt-to-equity ratio. | Medium - Useful for financial analysis and benchmarking. | Quarterly |
| Sales Metrics | Metrics such as sales growth, average order value, and customer acquisition cost. | High - Critical for understanding sales performance. | Monthly |
| Operational Metrics | Metrics related to operational efficiency, such as inventory turnover and production costs. | Medium - Important for operational management. | Monthly |
| Forecasts | Projections of future revenue, expenses, and cash flow. | High - Essential for planning and decision-making. | Quarterly |
| Break-even Analysis | Calculation of the point at which total revenue equals total costs. | Medium - Useful for understanding profitability thresholds. | Annually |
| Debt Levels | Total amount of debt and its structure. | Medium - Important for managing financial risk. | Quarterly |
| Equity | Owner's equity or shareholder's equity in the business. | Medium - Indicates the value of the business to its owners. | Annually |
Our financial forecasts are comprehensive and will help you secure financing from the bank or investors.
Common Questions You May Have
Reading these articles might also interest you:
- How to analyze cash flow for a startup?
- How do you forecast your project's EBITDA?
- How to forecast gross profit?
What are the key financial metrics to track for project health?
Key financial metrics include budget variance, which measures the difference between planned and actual spending.
Another important metric is the cost performance index (CPI), which indicates how efficiently the project is using its budget.
Additionally, tracking the earned value (EV) helps in understanding the value of work actually performed compared to the planned value.
How often should you review your project's financial status?
It is recommended to review your project's financial status on a monthly basis to ensure timely detection of any issues.
For larger projects, a bi-weekly review might be necessary to stay on top of financial health.
Regular reviews help in making informed decisions and adjustments to keep the project on track.
What is the average budget overrun percentage in project management?
On average, projects experience a budget overrun of 27% according to industry studies.
This percentage can vary significantly depending on the complexity and scope of the project.
Implementing strict budget controls and regular monitoring can help mitigate this risk.
How can you use software tools to simplify financial tracking?
Software tools like Microsoft Project, Trello, and Asana offer built-in features for budget tracking and financial reporting.
These tools can automate data collection and provide real-time insights into your project's financial health.
Using such tools can reduce manual errors and save time, making financial tracking more efficient.
What is the typical cost performance index (CPI) for successful projects?
A CPI of 1.0 or higher indicates that a project is performing well financially.
Projects with a CPI below 1.0 are spending more than planned, which is a red flag.
Regularly monitoring the CPI helps in taking corrective actions to improve financial performance.
How much contingency budget should you allocate for unforeseen expenses?
It is advisable to allocate a contingency budget of 5% to 10% of the total project budget.
This buffer helps in managing unexpected costs without derailing the project.
Proper risk assessment can help in determining the appropriate contingency budget for your specific project.
What is the average time spent on financial tracking per week?
Project managers typically spend 2 to 4 hours per week on financial tracking activities.
This time includes reviewing financial reports, updating budgets, and meeting with stakeholders.
Using automated tools can significantly reduce the time required for these tasks.