Friday, May 8, 2020

Is Project Accounting Really That Important - 1217 Words

Is Project Accounting really that Important? Project accounting is a practice that is used by businesses and organizations of all sizes. During the process of completing this system, leaders use the information gathered to create, plan, manage and control projects that are being completed by the organization. The goal of project accounting is to track the progress of these projects through financial reports. This information is then used to determine if the project is on-track, staying within budget and whether the project needs adjustments to the overall plan and structure of the project. One common concern that business leaders have is that the time, effort and money that is spent utilizing project accounting is not as valuable as one†¦show more content†¦This is also a process that is able to analyze every step stage of the project. This is beneficial because it helps businesses to know that they are staying on budget and whether the project will be completed on time. Along with budget, project accounting is also a crucial process that helps to determine ROI. Without the data provided by a project accounting system, a company would never be able to determine how much income was generated from a project. Project Accounting in Real Life There is really no denying that project accounting is something that is a laborious task. However, without it, research has shown that businesses aren t nearly as successful. One prime example of this concept comes from government agencies. According to PMI research, barely half of government strategic initiatives are able to meet their original goals and intent of the projects that they are completing. One reason that this is the case is because only a third of the agencies included in this research truly understand the value of project management. For those agencies that did understand and embrace project accounting, there were notable differences in the results of their projects. The most notable organizations that were affected by project accounting were the Social Security Administration, The Bureau of Indian Affairs and the Federal Aviation Administration. Here were a few of the ways that these organizations were able to see success for their projects. Hands On Leaders This

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