Project accounting

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

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

Regular budget reviews and margin recalculations are carried out to monitor the financial health of the project. As part of this process, it is essential to keep documentation of all project expenditure and to justify projected costs 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.