What steps do you take to keep a project within budget?
Answer examples and advice for how to answer this interview question for a Project Accountant interview
How to Answer
Provide the steps you took or would take to ensure the success of a project.
"I use a strategic approach by anticipating, and keeping track of, all upcoming expenses. I keep a record of all receipts and update my reports on a regular basis to ensure the most up-to-date information is easily accessible, enabling me to be prepared should an unanticipated expense be required."
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What steps do you take to keep a project within budget?
Firstly to try and understand the causes and then to discover if there are any mitigating actions that can be taken, including cutting cost in other areas or analysing projects critical paths to see if dead time can be used more effectively. Can we charge the customer more - was it there actions or requests that have caused the overrun. It's important to have regular reviews even if everything is running smoothly to catch problems before they occur if they have a financial impact.
I call the attention of the project manager to request approval from the donor/grantee on the excess on the budget. Monitor and control request for disbursements.
Look at variances and understand them. Ascertain that the actuals are correct. If correct communicate it to the budget lead, if it is possible to revise budget.
Actually I will try to follow the following procedure:
- control & monitoring my expenses
- trying to maximize the benefit of the goods.
- coordinate with the project manager to make our workers happy to raise them producer to finish the job before the planning time
- I will try to find alternative materials with low price complying to the project specs.
Ensuring that you keep your expenses and commitments captured and maintained timely in the system. This will at least enhance decisions on whether you request for reprogramming or you use other cost saving tactics.
I first review the situation on ground as in reasons for the variations. I compare the budget with the actual and investigate the factors for the variations. I ensured effective cost control and agree price with vendors ahead of time.
Stakeholders meetings should be held to handle overly budgets.
scale down on the items budgeted.
Analyze cost, understand reason for increase, find lean processes to reduce costs.
In this case I am going to write report abut insufficient budget for implementation of this project to finance manager and project manger.
At my last management position I was given a strict budget to operate with. There were three specific categories which I needed to monitor and keep under budget. Those were food cost, liquor cost and labor cost. The chef and I agreed to have food delivered multiple times a week so the inventory was continually turning over and could be better monitored with less in the walk-in cooler. The liquor cost was bit more challenging as greater discounts are given when you purchase in quantity, however, the ownership didn't authorize us to keep large amounts of inventory on hand as that would skew some numbers. In response to that I still purchased in bulk but had the distributor keep it stored at its warehouse and requisitioned as I needed it. This kept the on hand liquor numbers down while allowing us to utilize the discounts offered by the company. Finally, labor cost had to be monitored at all times. We upgraded our POS systems which allowed management to run labor reports throughout the day and send people home as needed.
At the last restaurant I worked at I was responsible for staying within budget in a few categories including food cost, liquor cost and labor cost. Food cost was an issue because we were only receiving orders once a week and some items would spoil. There was also an issue with theft. To resolve this we (the chef and I) decided to order food twice a week to keep less on hand. We also developed a system where we locked up the more expensive items in a cage in the walk-in cooler and also put a lock on the freezer so cooks would have to ask when they needed those items. Labor cost was an area we needed to monitor closely. It was harder in the beginning because we didn't have a software program to assist with this. We had to basically do an eye test with sales and how many people were clocked in. I kept pushing for a more modern POS system and eventually the ownership caved in. With the new system we could monitor real time labor costs and send people home as needed.
I will investigate the sources of the project of being over budget: due to internal estimating e, or job site issues (
I tried to do a cost analysis and give first priority on major items while reducing or cost cutting on other expenses to enable adapt to the actual budget.
By monitoring and evaluating expenses weekly.
Continually forecast the budget. A project run without frequent budget management and reforecasting will likely be headed for failure. Why? Because frequent budget oversight prevents the budget from getting too far out of hand. A 10 percent budget overrun is far easier to correct than a 50 percent overrun. Your chances of keeping the project on track with frequent review of the budget plan is far greater than if you forecast it once and forget about it.
Work with project staff to ensure obligations and expected expenses are within scope.
Every organisation main purpose is to reduce the costs and increase the profits..First we observe what are the main costs we are incurring. Then we can segregate the costs into 3 types. 1)Necessities 2)needs 3) luxuries.. Based on these we can cut the costs first from luxuries and then needs .. Necessities are always in priority list one.. So we cant cut them but we can minimise that too.. If all the costs are under control.. Automatically profit will be increased.
Monitor your budget and seek approval for requests are not budgeted for.
Keep account and monitor project expenses against the budget.
I want to give the best service that is required to you from me.