Project Financial Management

We believe traditional accounting systems are generally not configured to support robust project financial management requirements, and more particularly that the following considerations are often overlooked.

• Financial management of projects is a complex and specialised process; capabilities need to be created to manage this process effectively throughout the entire project lifecycle, from planning phases to project closure. Things get more complex (and usually worse) when factors such as exposure to international markets, supply chain strategy, number of contracting parties, and the like are thrown into the 'Project soup.'
• Project value delivery and success occur both over time and in the future, so a forward-looking approach is required.
• Project financial outcomes can change on a daily basis due to uncontrollable and exogenous events, so permanent governance and scrutiny is required. Micromanagement of financials is a must. After all, the large hit you will take next will not, in the slightest way, resemble the one you took last.
• Project management, not corporate, is responsible for project financial success, so project financial management capabilities and competencies need to be created around the project organisation.
• Financial management of projects is not "just another accounting task" for the corporate centre.

Robust project financial management means building interactive systems encompassing all financial aspects of a project. Examples of these aspects include products and service design, pricing, project costing, project value creation to business and to clients, project delivery, supply chain management, milestones management, project forecasting, cash flow management, and project financial modeling.

Our approach to dealing with the points mentioned above has been developed by practitioners in local and international markets. We believe substantive evidence (generally driven by the words "Show me") must drive all decision making, consequently all processes and solutions we deliver are designed to enable clients to make the most of their own data.

Contact us for an exploratory discussion.