Organisations face increasing pressure to optimise their operations and remain competitive. Two critical components of business success are effective project management and managing accounting and finances. These areas mostly work independently of each other, but integrating them more closely, can lead to improved decision-making and overall business performance.
Project Management is the process of planning, organising, and managing resources to achieve specific goals and meet project requirements including scope, schedule, cost, quality, and risk. Financial and Accounting Management affect every aspect of a business including financial planning, managing cash flow, tracking performance and reporting.
Traditionally, Project Management and accounting have been viewed as separate functions. However, close cooperation between these two areas can lead to better business outcomes. Organisations can ensure that projects are managed within budget and financial constraints, while also maximising their return on investment.
One way to achieve this integration is through cross-training and continuous learning and development. Live workshops, seminars, conferences, online training, practical workplace learning and mentoring, all contribute to skills development. By investing in employee development, organisations can ensure that their employees have the knowledge to achieve optimal business performance.
Ideally Project Managers should receive training in financial management and accounting, and accounting departments should contribute to and participate throughout a project lifecycle. By doing so, project managers gain a better understanding of the financial implications of their decisions, while finance and accounting professionals gain insight into the project management process.
For Project Managers, financial management training includes training on financial planning, budgeting, and forecasting, as well as risk management and financial reporting. Project managers who are financially literate make more informed decisions, resulting in better outcomes for the organisation.
Equally, finance and accounting professionals benefit from project management training. This may include training on project planning and scheduling, resource allocation, and project risk management. They are then able to provide more accurate financial forecasts and analysis, which help organisations make informed financial decisions.