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Project budget template
A budget that gets looked at just on the day the money runs out is a diary, not a plan. This template gives you the columns that let you see overspend while there is still time to do something about it.
Build it by cost line
Start with the lines, not the total. A single number cannot tell you where the money is going, whereas a short list of lines can. Group by what the sponsor will ask about: people, suppliers, licences, hardware, travel, training and contingency.
Keep the structure stable once approved. Moving costs between lines to make a report look better is the quickest way to lose a finance partner's trust.
- People: internal time and contractors.
- Suppliers and managed services.
- Software, licences and hosting.
- Hardware and equipment.
- Training, travel and sundries.
- Contingency, shown as its own line.
The columns
This is the copyable structure. Each line gets one row; the totals row sums the columns underneath and must match them exactly.
- Line and cost code.
- Approved budget and spent to date (actuals).
- Committed: ordered or contracted but not yet paid.
- Forecast to complete (what you expect still to spend) and forecast at completion (spent plus committed plus forecast to complete).
- Variance: approved minus forecast at completion.
- Owner and a one-line note on any variance.
A small worked example
The figures below are made up for illustration. Say a supplier line has an approved budget of £100,000, with £40,000 spent, £20,000 committed and £50,000 still expected. The forecast at completion is £110,000 and the variance is minus £10,000.
That line is already over budget even though just £60,000 has left the account. If you watched spend alone you would see a comfortable £60,000 of £100,000 used. Committed and forecast columns are what show the problem.
- Spent plus committed is your minimum cost.
- Forecast to complete should be reasoned, not simply budget minus spend.
- Negative variance goes in the SteerCo summary.
Contingency and changes
Contingency is for risks that have not yet happened. Draw it down through a recorded decision, naming the risk it covers, so you can see what is left and why. Approved change requests alter the budget baseline; unapproved ones belong in the forecast as a flagged exposure.
- Link contingency spend to a RAID item.
- Re-baseline through change control, never quietly.
- Show the budget before and after each approved change.
Review rhythm
Update actuals and committed spend monthly, at least, and the forecast whenever something material moves. Agree a tolerance with the sponsor, for example a percentage or an amount, beyond which you escalate. In Senshin the finance view keeps cost lines and totals linked, so what you report matches what sits underneath.
- Check totals against lines before every report.
- Reconcile actuals with finance each month.
- Ask each line owner for their forecast, not just their spend.
Keep this live, not in a spreadsheet
Senshin keeps your plan, RAID, budget and reports in one place, so this stays current without a weekly copy-and-paste. A 14-day trial, with sample projects.
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Frequently asked questions
What should a project budget template include?
Cost lines, approved budget, spent to date, committed spend, forecast to complete, forecast at completion, variance and an owner for each line.
What is the difference between committed and spent?
Spent is money that has actually been paid or invoiced. Committed is money you have contractually agreed to spend but have not yet paid, such as an approved purchase order.
How do I calculate forecast at completion?
In its simplest form add spent to date, committed spend and your reasoned estimate of what is still to come. Compare the result with the approved budget to get the variance.
How much contingency should a project budget have?
There is no universal figure. Base it on the size of your risks and the uncertainty in your estimates, agree it with your sponsor, and record how it is spent.
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