When you start working on a project the first and most important thing that you have to keep in mind is its expenses. Expense management is not only the most important thing but also the most difficult one as well. You need to keep a record of everything you are spending or using to finish your project. Doing all these things will create a lot of problems for you. The best solution to manage the expenses of your projects easily is the use of expense tracking software. It will keep a record of every single penny you are spending on the project and enable you to finish it under the budget.
However, many of you must be thinking that keeping a record of project expenses is not that difficult and they can do so manually. If you are willing to do the expense tracking manually then you must know the common types of expenses in a project. Knowing these types will help you understand the struggle and effort required to track and manage the expenses of a project.
Read ahead to know more about some of the most common types of expenditures incurred during a project:
Material Expenditure
You cannot start and finish a project without material. You need to get this material from several dealers to use it for the completion of the project. Tracking the material expenses is not that difficult. You can keep a record of material expenditures by noting all the materials you bought and used in the project. Bills and receipts will help you a lot to keep a record of material expenditures.
Many people consider material expenditure as the total expenses of a project. But it’s a little part of the project expenses. Many other things are also included in it. Let’s have a look at those things as well.
Internal Labor
Internal labor means all those employees or team members who are directly working on the project. For example, if you are working on an engineering project and 50 team members are working in the field with you then those 50 team members are included in internal labor. You have to pay them for their services. So the amount that you have to pay every member working on the project is also included in the expenses.
External Labor
If you have ever been a part of a project, then you must know the fact that only internal labor cannot finish a project. External labor is also required at several steps to finish a project successfully. Those employees or members who are not working on the project directly are included in external labor. Data entry operators, drivers, and other similar employees who are not visible but are linked with the project and play a vital role in the completion of a project. You need to pay them as well and keep a track of this payment.
Travel Expenses
You cannot start and finish a project by sitting in a single place. You need to bring materials, hire some other experts, or even visit other cities or countries to finish a project excellently. All these things required a lot of traveling. You don’t have to travel at your own expense as you are doing so for the project. So all the travel costs are included in project expenses. Managing travel expenses is a difficult process, as you have to keep an eye on the travel expenses of all team members when working on a project.
Resources Cost
You need water, electricity, place, and other resources when working on a project. Tracking them is also required so that you don’t have to increase the budget again and again when working on a project. You need to keep a track of all the resources and then calculate how much it costs to use these resources which can be a real headache for you when tracking expenses manually.
Bottom Line
After going through the above common types of project expenses you must have realized that it is hard to track them manually. Some miscellaneous expenses may also be included in them. Therefore you must get project tracking software as it will not only help you to track and manage expenses but the whole project as well BQE CORE must be your ultimate choice to get project tracking software as it is a reliable and well-reputed company.
