Cost management: Does it really need to be so boring?

Cost management: Does it really need to be so boring?

When doing the cost management of a project you should take care of basically three steps: planning, budget and costs control. And your mission is always the same – to find out where the costs come from. Issues come up when a project goes beyond budget expectations and the source of the costs is increasingly unclear. But it doesn’t have to be that way. Not at all. Discover how to know exactly what you need and raise your concerns:

Profitability can’t be a mystery

The final price of a service or product sold depends on how much is being invested for it to exist. Without a great cost management, the company can charge a unrealistic fee (higher or lower than it should be) and harm its profit margins, sales volume and financial balance. Aware of that, you may already have control on all expenses, fixed and variable, trying to identify unnecessary investments and others which need some special attention because they generate more sales, for example. It turns out that it’s not feasible to insert and update all of these information in a sheet manually…

cost management

Are you surprised with this picture? This is an automatic report of costs and time invested in a certain customer, generated with an online management tool after few clicks. As you saw, it compares the budgeted hours to the worked hours. Much cooler than Excel, huh? Easier too. And don’t think that’s all there is to it because you need more details to discover the source of all costs.

cost management

That’s why the report shows all the pieces of time and money that each project, employee and task are taking of each client. These are precious data that will influence on your decisions, for instance, cutting expenses and help you identify bottlenecks, when to you’re able to make new investments and hiring or setting up new goals. If you want some advice, try to be disciplined. When your cost management team make a regular analysis of all these data – which are much easier to get – and know how to take on opportunities making your business grow faster than you’ve imagined.

If it’s an uncomplicated cost management, with all this technology embedded, that you need for your agency, IT team, education company, production company or office, try Runrun.it for free. A manager’s best friend.

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