The project budget structure includes both direct and indirect costs

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Budget Calculation Template

An incorrectly drawn up budget leads to unplanned expenses appearing as the project is being implemented. The money that we planned to allocate for the project is not enough. We have to urgently look for funds to bring the project to completion.

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What does the project budget consist of?
The project budget is a general statement of expenses. The project budget consists of the following elements:

1. Direct costs. Direct costs are the costs associated with the implementation of the project. They are usually divided into several categories:

employee salaries, including bonuses and premiums;
the cost of necessary materials, tools, equipment, services and software;
payment for services of contractors, freelance employees.
2. Indirect costs. These are expenses that are not directly tied to a specific project, but are necessary for its implementation:

office rent and payment of utilities;
salaries of accountants, lawyers and other employees who work on several projects at once;
purchasing office supplies for office staff, etc.
3. Risks. Each project is associated with certain risks that can lead to expenses uk phone number list outside the plan. To manage the budget, reserve funds are created - a financial cushion that is designed to cover unexpected expenses. For example, if the cost of raw materials increases or it is necessary to hire an additional employee.

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Depending on the project, other cost items are taken into account, for example:

Depreciation and wear and tear. Sometimes equipment or machinery needs to be replaced or updated over time, which should be taken into account when budgeting for the project.

Employee assessment and training. To successfully implement the project, it may be necessary to periodically assess employees and train them.

Let's say, when creating and maintaining a corporate blog, you can send authors to training courses. Some will need to improve their case writing skills, while others will need to work on their visual storytelling skills.