Budgeting Skills

Project managers establish and manage budgets and therefore need some knowledge of finance and accounting principles. Especially important in this skill area is the ability to perform cost estimates for project budgeting. Different methods are available to determine the project costs. They range from estimating individual activities and rolling the estimates up to estimating the project's cost in one big chunk. I'll discuss these methods more fully in later chapters.

After a budget is determined, you can start spending. This sounds more exciting than it actually is. Reading and understanding vendor quotes, preparing or overseeing purchase orders, and reconciling invoices are budgeting skills that the project manager will use on most projects. These costs will be linked back to project activities and expense items in the project's budget.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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