Hello,
Do you include income in project budget?
What is the purpose of having income in budget? Saving Changes...
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AKSHAY JAINPlanning Group Leader| YOKOGAWA, BahrainGwalior, Mp, India
No, Both are separate things, Budget is something which you are authorized to spent. For you can prepare a cash flow trend or statement which will indicate balance in your expenditure and income. Saving Changes...
Dean CarsonPM Consultant| DCarsonCPASouth Ozone Park, Ny, United States
Most Projects typically would be an expense side item to your Accounts and your PnL and would thus be seen as an expense and not an income generating line. That noted Project Management deliverable s will frequently have Income generating or expense savings tie in's in direct or indirect manners. The ability to promote and attain stakeholder buy in from Business Leadership and Management can be enhanced as teamwork can be enhanced on a multi-level tie in to financial objectives meaning 1. The responsibility of PMs and Staff and related stakeholders to agree and conform to or to perform better than a stated budget remembering that in accounting terms the best of budgets are both measurable and attainable 2. Preconsideration of the Balance Sheet, Profit and Loss and Cash Flows tie ins of Project Management Efforts restated how will your project relate to the tangible lines of value measured in Financials to potentially grow assets, decrease liabilities, increase revenues or reduce expenses and how will it help on Revenue Recognition or Expense Recognition to Cash Cycles.
The ability to see the connection between any exercise and the level of Project, Process and Entity Financial impacts will strengthen your Project Management needs in relation to entity value at work for Industry, NGO, Non Profit, Government and or Community needs depending on your role but always relevant to Project Goals and Deliverables as an important part of the Macro and Micro dimensions of your project workflows in financial terms.
Most project workflows interface with a number of relevant dimensions that include Data (perhaps Big Data), Financials, Communications, Scheduling, Monitoring, Analysis (As in cost analysis in comparison to budget here and of course on timelines and deliverables) and the ever important level of Human Teamwork and Logistics to deliver on needs. The PMBOK and related methodologies no doubt cover this on many levels but it is always worth repeating that to be mindful of micro (the project and teamwork) and macro (stakeholder and entity and frequently policy and community value where compliance or governmental reporting may be a goal of the work flow for example) perspective helps on performance and awareness to place the role in context to value. Placing project in context to value across a number of levels will ultimately help on improved performance through context to purpose.
In my mindset and analysis, I believe that we all can perform better when we understand that part of our role onto ourselves, our teams and our entities and by extension our communities as a chain of mindfulness to workflows to integrate value across a chain of relevant impacts that resonates across work streams which always have to one degree or the next multiple layers of impact. Hope this helps on context to PM + Value as observed from here on lines of deep cross functional research and from the hands on roles through performance and support of Entity Strategic and Operational roles across a range of responsibilities related to Financials, Legal / Compliance, Technology, Leadership, Management, Development, Communications, Services, Research and Teamwork. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
I am not too sure what you mean by income but if you mean income coming into the project then no, that a totally separate line and should not be part of your cost baseline unless you meant something else by income. Saving Changes...
Anonymous
Well, thanx for answers. I too was sure that it shouldn't be in the project budget. But some my colleagues insisted that income from some project activities must be in budget. So I decided to get more opinions. Income is from sales of some parts of uninstalled mechanisms. In project scope is to uninstall and to sell those parts. Saving Changes...
Originally purchased items would be a capital costs for accounting for IT budget. These are capitalized items or depreciation costs. You need more information about the part to include it as a capitalized budget cost. Saving Changes...
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