In carrying out an effective project financial management in any organization, you need to know the value of financial management in any project. There are some benefits that you are going to derive from your financial documents.
In my previous articles, I have said it that having a financial management plan will allow you to make financial decisions without any hassle. Let us look at financial management values in an I.T project. Follow me as we look at it together in this article.
#1 Quantification in financial terms
One of the benefits of financial management document is that it allows us to quantify the benefit of the project in financial terms. As the project manager, you will need to explain to the business community the financial benefits of the project. The two communities now have to agree on the financial benefit of the project. This will now be used to decide whether the project should be done or not.
#2 value of I.T service as part of financial management values
Another benefit of financial management values projection is that it allows us to know the value of I.T services. In financial terms, you can know the actual amount that your product will add to the business.
This will dictate the amount of support that you will get from business management.
You should know that the management will turn deaf ears if the product will not add financial values to the business. You need to know this so that you can use it to prove for the approval of the project.
#3 value of assets as part of financial management values
In calculating the financial value of any I.T Project, you need to know the value of underlying assets. At times, when you are carrying out such projects, you need to know those assets that need to be acquired.
The business will want to know all the assets that need to be acquired.
This will allow the management to decide whether those project should be carried out or not. You can also use this to push for the project with the management.
#4 operational forecasting as part of financial management values
In conclusion, having a financial management plan for Information Technology project will allow you to determine the operational forecasting for the project. You will be able to determine the associated cost that you need to reserve in order to keep the project going.
This is a determining factor that will help you to decide whether the project should be done or not. What is the essence of a project when you will be able to maintain the project.
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Adeniyi Salau (CCNA,CDMP, CEP, MOS, MCP, CSCU (Project 2016) is a Google and Beingcert Certified Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.