Properly managing a project’s finances is essential to ensure that budgets are not only met, but also that each phase of the project contributes positively to the final result. Continuous monitoring of costs, revenues, and margins is essential to obtain a clear and timely view of economic performance, make more informed decisions, and optimize profitability.
Comprehensive monitoring of economic flows
Every project has a complex economic flow that includes labor costs, purchases, reimbursements, and revenues. Having a complete overview of these movements is essential to understand how the project is evolving and to intervene in a timely manner if there are deviations from economic targets. Using aggregate reports that collect all this information in one place provides an accurate and up-to-date overview, reducing the risk of errors and increasing the efficiency of the decision-making process.
Key objectives of economic analysis
A good economic analysis system for the project must focus on certain key objectives to ensure accurate control of cash flows:
- Compare turnover and product to calculate inventory (liso): constantly monitor cash flow, keeping track of inventory and verifying that it is correctly accounted for.
- Compare the value of production with costs to determine the gross operating margin (GOM): this comparison helps to understand the profitability of the project and make timely adjustments if necessary.
- Distinguish between recorded costs and verified costs: this step allows for a more accurate estimate of the value of invoices to be received, optimizing credit and cash flow management.
Milestone performance analysis
In addition to the overall analysis of a project, it is also important to monitor individual milestones. Specific phases of a project can have different dynamics, and analyzing them individually allows you to identify any areas of inefficiency or problems in advance. Regular monitoring of performance at the milestone level, with a focus on key KPIs such as Production Value, LISO, and EBITDA, is essential to maintaining control throughout the project lifecycle.
Furthermore, the ability to analyze results by company, customer, order, or business unit helps to identify trends and critical issues in a timely manner, allowing for more targeted decisions and resource optimization.
Continuous monitoring and optimization
A well-structured economic monitoring system allows for rapid intervention if inefficiencies or deviations from the planned budget arise. Being able to analyze data in real time and in detail allows for faster and more informed decision-making, improving the effectiveness and efficiency of projects. In addition, accurate data analysis allows for the optimization of resources and reduces the risk of unplanned expenses, improving overall profitability.
Conclusions
In today’s landscape, where competitiveness and efficiency are more crucial than ever, monitoring and optimizing the economic performance of each project is essential. Having tools that allow you to aggregate and analyze costs, revenues, and performance in real time helps you make better decisions and ensure that each project contributes positively to your business objectives.
For those looking for a comprehensive solution for project monitoring and economic analysis, Tarko by Akeron offers a platform that integrates all these tools, making the analysis process smooth, detailed, and timely, improving economic management and performance control at every stage of the project.
