Project Financial Management
“I need to have a better sense of costs, revenues, and transfers associated with each project. How can I determine how much money is being spent on each project, and identify which ones are adding value and which ones are not?”
The problem: Most organizations don’t know what their projects cost, or make.
Service organizations are under constant pressure to demonstrate the value of every project dollar used. As a result, organizations need better insight into the cost of every project, job, or initiative, understanding not only how much money is being spent, but where value is being added.
The solution: Project Financial Management helps organizations better understand the financial status of their projects.
To ensure effective governance and control, you should be able to track the financial costs, revenues, and budgets for every phase of every project undertaken by your organization. Intellilink combines a deep expertise in working with project organizations with extensive financial management experience to help you redesign your financial business processes, then select and roll out technology to improve the financial management of your projects.
A critical entry point for obtaining much of this cost information will be the implementation of a time collection system. We strongly recommend that all project-based organizations – including internal service organizations like IT departments – should collect time information from their employees and consultants. Without this information, effectively understanding the effort (and hence cost) required to complete a project is next to impossible.
Accurate billing is the cashflow lifeline of any professional services firm and an integrated system that efficiently pulls together time, expense, and other reimbursable cost information onto invoices is essential. Similarly, many internal service organizations are being forced to compete against external service providers, and must maintain accurate transfer pricing mechanisms to demonstrate the value they are adding to the company.
Financial reporting is critical to making decisions. Unfortunately, many organizations do not have the project financial information available to make accurate and timely decisions. A request for project financial reports generally results in an intensive manual effort to obtain all the information required. The effort is then repeated the next time the request is made.
Project Financial Management addresses these problems by first understanding your current financial system and then documenting and redesigning your financial business processes. This may then result in the custom development or selection and implementation of a project financial solution.