Budget Tracking
Budget tracking is a process used by businesses to track the budget progress of a specific project so that it can be completed within its allotted budget.
Updated: October 20, 2023
Budget tracking is a process used by businesses to track the budget progress of a specific project so that it can be completed within its allotted budget.
Budgeting and forecasting software can be used for budget tracking. The budget details the anticipated expenses and profit for a specific project when project management software is used. Teams will be able to manage how much of their budget they are using, where the money is going, and what adjustments need to be made to properly complete the job by using this type of budget tracking.
Teams can also get the opportunity to offset extra expenses before it is too late by using tracking budgets. Teams can easily identify budget items that need more funding than anticipated with budget tracking. The project can be completed without going over budget as funds can be reallocated to compensate for this.
Incremental budgeting, Activity-based budgeting, Value proposition budgeting and Zero-based budgeting are different types of budget tracking. Budget tracking helps organizations optimize their project management by monitoring costs, comprehensive records and monitoring team efficiency.
Individuals should involve the team, create a project task list, get the right tools, account for hidden expenses and learn from past budgets for successful budget tracking.
Types of budget tracking methods
- Traditional or Static Budgeting
- Continuous or Rolling Budgeting
- Zero-Based Budgeting
- Activity-Based Budgeting
- Variance Analysis
- Performance-Based Budgeting
- Incremental Budgeting
- Cash Flow Budgeting
- Rolling Financial Forecast
- Balanced Scorecard
- Capital Budgeting
- Flexible Budgeting
