Project Financial Planning

Want to stop guessing and know what it takes to keep your projects funded from day one to final payment? Here’s my five-step process to uncover your real, hard costs and make confident, cash flow-driven decisions that set you up for success: (1) 𝗠𝗮𝗽 𝗼𝘂𝘁 𝘆𝗼𝘂𝗿 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝗯𝗮𝗹𝗮𝗻𝗰𝗲𝘀. What’s in your WIP report? Lay it all out: which projects are on the table, when do they kick off, and how much cash will you need? If you’re used to running two jobs but suddenly have five starting, even perfect margins won’t stop a cash flow crunch. Early awareness of these numbers ensures you don’t overextend. (2) 𝗧𝗿𝗮𝗰𝗸 𝘆𝗼𝘂𝗿 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗰𝗮𝘀𝗵 𝗮𝗻𝗱 𝘂𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀. Build a cash flow model for each project—then roll it into a big-picture corporate view. Knowing when money comes in and goes out lets you pivot before issues arise. Need to renegotiate supplier terms or reschedule deliveries? This clarity gives you time to act strategically instead of reacting under pressure. (3) 𝗣𝗶𝗻𝗽𝗼𝗶𝗻𝘁 𝘆𝗼𝘂𝗿 𝗳𝗶𝘅𝗲𝗱 𝗮𝗻𝗱 𝘃𝗮𝗿𝗶𝗮𝗯𝗹𝗲 𝗰𝗼𝘀𝘁𝘀. Look closely at overhead, labor, and material expenses. Identify patterns, reduce waste, and refine operations. By understanding where your money goes and spotting red flags early, you can maintain positive cash flow instead of constantly chasing it. (4) 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗺𝗮𝗿𝗴𝗶𝗻𝘀 𝘆𝗼𝘂 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗻𝗲𝗲𝗱. Big margins on paper won’t help if you’re stuck waiting months for payment. Determine what it takes to keep your cash flowing. If you need to front large costs, ensure your balance sheet can handle the strain—or adjust payment terms and project scope to better fit your capacity. (5) 𝗗𝗼𝗻’𝘁 𝗴𝘂𝗲𝘀𝘀 —𝘂𝘀𝗲 𝗮 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝘁𝗼𝗼𝗹. Whether it’s yours, your accountant’s, or our free Project Cash Flow Tool, a reliable model is your roadmap. It shows how much cash you’ll need, when you’ll need it, and where the gaps might appear. Armed with this insight, you can choose suppliers with smarter terms, adjust schedules, and make strategic decisions that keep you liquid. When you break down your costs, analyze terms, and plan your cash flow before work begins, you move from guesswork to strategy. This approach puts you in control, prevents unnecessary delays, and positions you to grow confidently—knowing every dollar is accounted for.

🚀 𝗛𝗼𝘄 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗰𝗼𝘀𝘁 𝗼𝘃𝗲𝗿𝗿𝘂𝗻𝘀 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 — 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗮 𝗯𝘂𝗱𝗴𝗲𝘁 𝗺𝗶𝗰𝗿𝗼𝗺𝗮𝗻𝗮𝗴𝗲𝗿 Cost overruns don’t come out of nowhere. They’re the result of decisions, blind spots, and bad assumptions made early on. Here’s a practical checklist to keep your next project on budget — without losing your sanity (or your sponsor’s trust): ✅ 𝟭. 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝗿𝘂𝘁𝗵𝗹𝗲𝘀𝘀 𝗰𝗹𝗮𝗿𝗶𝘁𝘆 If your goals, scope, and success criteria are fuzzy, your numbers will be fiction. → Spend more time on alignment than estimates. ✅ 𝟮. 𝗕𝘂𝗱𝗴𝗲𝘁 𝗳𝗼𝗿 𝗰𝗵𝗮𝗻𝗴𝗲 — 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 Projects evolve. Scope shifts. People leave. → Set aside a formal “change reserve” and update it monthly. ✅ 𝟯. 𝗨𝘀𝗲 𝗿𝗲𝗮𝗹 𝗱𝗮𝘁𝗮, 𝗻𝗼𝘁 𝘄𝗶𝘀𝗵𝗳𝘂𝗹 𝘁𝗵𝗶𝗻𝗸𝗶𝗻𝗴 Historical data beats optimism. Always. → Where data is lacking, use AI to simulate risk-weighted scenarios. ✅ 𝟰. 𝗧𝗿𝗮𝗰𝗸 𝗵𝗶𝗱𝗱𝗲𝗻 𝗰𝗼𝘀𝘁 𝗱𝗿𝗶𝘃𝗲𝗿𝘀 Integration. Training. Stakeholder resistance. Opportunity costs. → Budget what you don’t see on the Gantt chart. ✅ 𝟱. 𝗧𝗿𝗲𝗮𝘁 𝗿𝗶𝘀𝗸 𝗹𝗶𝗸𝗲 𝗮 𝗹𝗶𝗻𝗲 𝗶𝘁𝗲𝗺 Risks aren’t just flags—they’re financial factors. → Quantify risk exposure and include it in your base forecast. ✅ 𝟲. 𝗔𝘀𝘀𝗶𝗴𝗻 𝗯𝘂𝗱𝗴𝗲𝘁 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 No one owns the numbers = everyone overspends. → Make ownership visible and tied to KPIs. ✅ 𝟳. 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗲 𝗰𝗼𝘀𝘁 𝗰𝗼𝗻𝘁𝗲𝘅𝘁, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗰𝗼𝘀𝘁 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 Stakeholders need to see tradeoffs, not just numbers. → Frame your budget around value decisions, not just accounting. 💡 Every budget tells a story. Make sure yours isn’t a fiction. Which of these 7 shifts could help your team the most right now? ♻️ Repost to help project teams stop burning money through vague planning. 💾 Save this post for later—it’s your on-the-go checklist to budget integrity. ➕ And follow Markus Kopko ✨ for more. #projectleadership #budgeting #projectsuccess

I showed a CFO how to unlock $12M in savings over a 45-minute call. Here’s what I shared. 6 months ago, I got a DM from a CFO at a $300M energy and construction EPC firm. "We’re bleeding cash on every project. I know there are margin leaks… but I can’t see where they are." This is something I hear ALL the time. 90% of infrastructure projects go over budget by 30% or more. Margins evaporate. Fast. The CFO asked: "If you were in my seat… what would you do?" So I told them exactly what I’d do 👇 🔴 The problem? The company was managing complex energy and construction projects. They had: - Change orders piling up - Vendor payment delays - Cash flow inconsistencies - No real-time financial visibility Every day, the CFO was reacting to chaos, not controlling it. ✅ My AI Playbook I told him: “You don’t need 10 consultants or a 2-year project. You need the right systems working together.” We built this 5-part AI Margin Defense System: 1️⃣ Data Consolidation - Connected all finance + project data into Snowflake - Built 1 single source of truth No more scattered spreadsheets. 2️⃣ Predictive Risk Alerts - Used nPlan to analyze thousands of past project data points - Spotted cost overrun risks before they happened We turned hindsight into foresight. 3️⃣ Real-Time Project Controls - Integrated Procore for live project + budget tracking - Automated alerts when line items drifted 2%+ from baseline This caught small problems before they became big disasters. 4️⃣ Dynamic Cash Flow Forecasting - Built live rolling forecasts in Anaplan - Predicted liquidity squeezes 60+ days in advance The CFO slept better at night. 5️⃣ Automated Reporting - Built instant dashboards - Reduced manual reporting work by 70% The finance team got time back to focus on strategy. His results? In just 6 months: - Prevented $12M in potential cost overruns - Increased project margin by 25% - Cut reaction time from weeks to hours - CFO gained full control of project financials All with a system that can be scaled company-wide. My takeaways? You can’t manage what you can’t see. AI-powered financial systems give infra CFOs the visibility + control they’ve never had before. Margins don’t erode randomly. They erode silently. Until you install early-warning systems. Ask yourself… If you’re leading finance at an infrastructure firm: 👉 Are you reacting or predicting? 👉 Do you know (today) which line items are drifting? 👉 Could you spot a $1M leak before auditors do? Want my full playbook? Comment “Control” below, I’ll DM you the full system map. Repost this if you know a CFO who needs to see this. Follow me (@LylyaTsai) for more real-world AI finance wins!

Scaling without financial alignment is growth in reverse. Here's how to optimize strategy, accelerate growth, and hit goals. As businesses scale, aligning financial strategy with short-term objectives and long-term vision is critical for sustainable growth. I've worked with many companies that was growing fast but struggling to keep financial goals in sync with their rapid pace. Here's how I’ve helped them recalibrate and accelerate growth:    1. Re-assessing the Budgeting Process: - We dive into their current budget - Identify inefficiencies, misallocated resources, and cash flow bottlenecks. By focusing on forecasting and creating more flexible budgets, we made sure the company could stay agile, even during rapid change.    2. Aligning Department Projects with ROI: Instead of treating each department's initiatives in isolation, we developed a framework that measured and tracked Return on Investment (ROI) for every key project. - Each department was aligned to strategic financial goals. - Projects that didn’t generate strong returns were optimized or postponed. - ROI prioritization became the backbone of decision-making.   3. Setting Clear KPIs and Milestones: - We defined key financial metrics for both short-term and long-term. - This allowed departments to align their actions with tangible outcomes. Knowing exactly how their work contributed to the broader financial goals, employees were on board, engaged, and proactive. Results: Cash Flow Improved by 25% in just 3 months Project ROI Increased by 30%, with higher returns on departmental investments Long-Term Financial Strategy now aligned with short-term operational goals The Takeaway: Financial alignment isn’t just about controlling costs—it’s about ensuring that every department, every project, and every dollar is pushing your business toward your ultimate goal. When you align your budget with ROI-focused projects, you achieve growth faster and smarter. If you need help developing and executing a financial strategy DM me Please share your thoughts in the comments Follow me, Beverly Davis for more finance insights  #FinanceStrategy #BusinessGrowth #ROI #Budgeting #FinancialGoals #StrategicPlanning #Founder #CEO

The Importance of Financial Forecasting in Managing projects In project management, success is not just about delivering on time and within scope—it’s also about financial sustainability. Financial forecasting plays a crucial role in ensuring that projects remain viable, cost-effective, and aligned with strategic objectives. Better Budgeting and Cost Control Accurate forecasting helps project teams anticipate costs, allocate resources efficiently knowing when to mobilise and demobilise and avoid financial overruns. It ensures that every expense aligns with the project’s financial plan. Risk Mitigation Unexpected financial risks can derail even the most well-planned projects. By forecasting potential cost fluctuations, funding gaps, or market shifts, teams can proactively implement contingency measures. Improved Decision-Making With clear financial projections, project managers and stakeholders can make informed decisions about investments, resource allocations, and potential adjustments to keep the project financially sound. Investor and Stakeholder Confidence A well-structured financial forecast reassures investors, clients, and senior management that the project is on track financially. It builds trust and ensures continued support. Alignment with Business Goals Financial forecasting ensures that projects contribute to long-term business objectives rather than becoming financial burdens. It helps organizations maintain a balance between growth, profitability, and sustainability. As a Senior Project Planner & Substation Lead, I have seen firsthand how financial forecasting can make or break a project. It’s not just about numbers—it’s about strategy, sustainability, and success. #ProjectManagement #FinancialForecasting #Leadership #ProjectSuccess #ProjectPlanning #ProjectFinances #ConstructionProjects #EnergyInfrastructure