Project accounting

Project accounting refers to the process of managing and monitoring all financial aspects of a project, ensuring accurate accounting of costs and associated revenues.

This approach allows for a detailed analysis of a project's financial performance, informed decision-making to maintain budget alignment as well as the identification of potential financial risks. It involves designing a projected budget that includes all project-related costs (such as employee working time, purchases, travel expenses) and projected margins.

Regular budget reviews and margin recalculations are carried out to monitor the financial health of the project. It is essential that all project expenditures and the expected costs are documented as part of this process in order to comply with accounting standards. Project accounting is essential for effective project management, as it provides a better understanding of financial performance and risk management.