Why is Project Budget Management Important?
When clients judge your ability to properly execute a project, budgeting will be an important metric for them. Budgets are the backbone of any good project. They drive what will remain within the scope of the project, the amount of time and effort spent, and ensure that everyone involved is aware of what will and will not be executed.
When budget management goes awry, the consequences can impact everyone. Project teams can find themselves losing money, even being let go entirely. Clients are, predictably, upset when this happens as well. Good budget management leaves a perception of competence. Poor budget management simply does not. Your future relationship with any given client can hinge upon their confidence in your ability to handle this important task.
Not only is budget management important, it is also complex. In a perfect and uncomplicated world, a project manager could simply crunch numbers, and then provide a completely accurate cost estimate to the client. Nothing unexpected would ever happen, and that number could remain written in stone.
Anybody who's ever worked on more than one project knows that the above scenario never happens. Scope changes. Resources are fluid. Clients simply change their minds. Your budget can easily become a moving target. The key to budget management is keeping things under control while all of this happens. A well-managed budget is a tool that can keep everything else on track.