Calculated and automatically updated via a tool, the landing projection makes it possible to review profitability estimates by comparing the schedule and the use of resources with the objectives of the project.
This means you can keep proactive control of project costs by anticipating deviations that could be caused by current planning.
The advantage? You have all the keys in hand to rectify the trajectory of the project and achieve your objectives by making several adjustments:
optimization of the resources allocated to tasks,
objective decision-making in the face of the reality on the ground,
Revision of the budget with a view to increasing margins.
The Role of Budget Forecasting in Project Management
When it comes to project tracking, KPIs are plentiful.
It can then be tempting to doubt the value of monitoring margins on landing and to fear a counterproductive effect of over-analysis...
But we are here to assure you otherwise.
Benefit from Increased Project Profitability Monitoring
By being notified of upcoming deviations, you pay better attention to the project schedule.
💡 Since no one is immune to an incorrect budget estimate, this comparison with actual costs makes it possible to predict any unanticipated scenario (because it can happen to the best of us).
Resource Allocation, but Make it Flexible
Reforecasting does not stop at the prevention of financial risks: temporal risks are also ruled out.
Who is positioned on which task? Is an essential employee planned elsewhere? What about roles: can a junior free up a manager's time?
These are all questions that will allow you toadjust the workload, and the costs related to the salaries and daily rates of your project teams.
This makes it easier for you to spot over-consumption or initial underestimates of resources.
All you have to do is adjust the distribution of tasks of the resource planning depending on the actual progress of the project.
Once capacity occupancy is optimized, you can ensure that resources will be able to meet delivery deadlines.
Make Revenue Forecasts More Reliable
By tracking the completion rate, the revenue projection is more reliable.
💡 To take advantage of this reliability, you need to make sure that your ERP reports all the data about the project's progress in real time! This limits input errors and overtime to update.
You then benefit from reliable financial reports that improve your forecast visibility on the company's overall situation and facilitate your accounting.
This allows you to provide a safe margin for unforeseen events and prove to your customers and partners that you are a trusted player!
How to Calculate the Financial Forecast of a Project?
Reforecasting is powerful. But its ability to ensure your profitability is only matched by the complexity of its calculation.
Discover in the following steps how Stafiz makes it easier to manoeuvre, for accurate and secure estimates thanks to data.
Step 1: Collect Financial Data
To collect all the data related to cost fluctuations, a project management ERP is essential.
If you're looking for a tool – or want to assess the suitability of yours – make sure it has the following features.
Time management: time entry, real-time tracking, desired granularity (minute, hour, day, week, etc.), data entry reminders, synchronization with calendars. Bonus: validation process.
Accounting management: entry of costs, categorization of costs, allocation to different resources.
Budgeting: provisional and on-date budget, synchronization with costs, taking into account salaries.
Step 2: Analyze Progress
Once the data has been consolidated, how should progress be interpreted ?
Start by calculating the completion rate. To do so, go to the Stafiz mission tracking page, KPI tab. Two methods are then possible.
Completion rate
The Resource Planning Method
This method is used to compare the days already completed with the forecasts of remaining days.
📌 Formula: Completed days / (completed days + planned days)
This method is preferred when:
you monitor performancein relation to a commercial commitment,
you do budget forecasting reviews or end-of-project reviews,
You want to identify budget overruns.
💬 Example "We had planned 100 days on the project, we consumed 90 → 90% progress"
Choose this approach for your operational management.
The Budget Method
This time, the days worked are related to the days budgeted on the production plan.
📌 Formula:
Days Completed / Days Budgeted
Instead, use this method if:
you need dynamic and continuous monitoring,
You want to adjust the resource planning during the mission,
You have frequent changes in workload.
It is the best option for strategic and financial monitoring.
💬 Example:
"We have completed 60 days, there are 20 days to go → 75% progress"
We can only recommend that you use Stafiz to track thelanding of your projects.
You get these results in a few clicks, without having to set up complex and unbelievable functions depending on the data source.
Comparison Table
Criterion
Budget method
Method resource planning
Formula
Days Completed / Days Budgeted
Completed days / (completed days + planned days)
Vision
Fixed goal to be achieved
Dynamic and up-to-date vision
Usage
Follow-up on the initial commitment
Real-time operational management
Overshoot indicator
Easy to read
Less readable
Responsiveness to change
Not very responsive
Highly responsive
Management of very long projects
Less suitable (fixed reference)
Adapted (continuous reassessment)
Customer relevance
Very clear for customer reporting
Less relevant without explanations
Step 3: Identify and Analyze Gaps
The comparison between the completion rate and the initial objectives makes it possible to identify the differences in profitability.
💡 A 0% completion rate therefore indicates that the profitability objective provided for in the budget is therefore respected.
A slight variation around 0 is therefore not alarming, whether negative or positive.
How to Analyze a Negative Completion Rate
If your current rate is -10%, you are 10% less profitable on this mission than you expected.
However, a rate equal to or less than -20% implies that the mission costs more than expected. It must therefore be completed quickly, or an adjustment of the budget or deadlines must be demanded.
How to Analyze a Positive Completion Rate
If your current rate is 20%, you are 20% more profitable on this mission than expected, well done!
On the other hand, a rate above 30% is surely too good to be true.
It is common for resource planning so the system thinks that there is no more work planned, and artificially overestimates the performance.
Check if the resource planning is up to date.
Step 4: Update the Forecast
Now that the discrepancies have been identified, it's time to move on to corrective actions.
For example, you can change the Assignments of resource planning in case of over- and under-load.
⚠️ It is imperative to measure the impact of these changes on your margins and costs before validating your decision.
To do this, you can use Stafiz's Scenario Builder.
The scenario tool offers a selection of relevant profiles. You can select several to explore all the possible options.
The calculator displays the best-case scenario results based on time and margin targets.
Turn this scenario into actual planning! With one click, schedule suggested resource assignments. You can edit certain properties, excluding certain resources from the final schedule if you wish.
Step 5: Final Checks
Just like the human mind, technology can have its own limitations.
Only the elements made available to it will be processed by the software. So remember to check if certain events or information have been taken into account.
The Customer Discounts Case
In the event of negotiations or a commercial gesture, you could offer a reduction in the original sale price of the project.
Remember to indicate this in your system to update the budget forecasting. In this way, the projected turnover will be reduced accordingly.
Stafiz allows you to record these discounts directly in the invoices tab: the calculation is automatic!
Margins and Costs Check
Before drawing up your financial report, pay attention to the proper consideration of costs by your tool. If the data from resource planning are not linked to your financial data, the margin may not take into account the reality of profit.
Without synchronization between your different tools, you will need to think about adding all the adjustments related to the project costs.
In the event of absence or adjustment of schedules, the salary costs must therefore be informed.
Step 6: Make a Final Report
The financial landing is an indicator rich in perspectives, and which will be of interest to various actors in the project.
As a result, it is interesting to make a summary report of the costs and revenues actually generated on an assignment.
💡 From Stafiz, you can easily export this data in the reporting tab.
You can repeat this action as many times as you need, depending on the pace of your follow-up meetings : weekly, monthly, project-stage, or even daily if necessary.
The budget forecasting avoids unpleasant surprises, improves profitability and facilitates proactive project management.
It is an essential lever to ensure the financial and operational success of your missions.
However, its formulas are complex and depend on an ever-increasing amount of data. It is therefore essential to equip yourself accordingly, for example by opting for a tool like Stafiz to link your financial management to your project planning.
Questions:
The budget is an initial forecast of expenses and revenues for a given project or period. It serves as a reference point for financial monitoring.
The landing is an updated revision of these forecasts, based on actual data and trends observed during the project. It allows the initial budget to be adjusted to reflect reality.
Several tools and software can facilitate the budget forecasting.
Spreadsheets (Excel, Google Sheets): for monitoring and analyzing financial data.
Project management software: for cost and resource tracking.
Business Intelligence (BI) software: for data analysis and visualization.
Financial management software (ERP): for a global view of the company's financial situation.
The advantage of a project management ERP like Stafiz is that it is more adapted to the business issues of consulting companies or even IT Services.
The budget is the initial forecast.
The forecast is a regular update of the forecast, based on current data.
Reforecasting is a more thorough revision of the forecast, usually carried out in the event of significant changes.
In summary, the budget is the starting point, the forecast is the adjustment along the way, and the reforecast is the in-depth review.
