Developing a Budget Basics for drafting and maintaining a budget for simple tracking and reporting

Early Estimates – before project start It’s important: May need to create a “quote” to a potential client Early identification of what resources will be needed Early confirmation of feasibility of the project First high-level pass at a project schedule Your first DRAFT budget is likely not very accurate: Only estimated values for spending Forces you to think about what will need to be done Provides a baseline for future updates

It’s a LIVING DOCUMENT! You will continue to make frequent updates to the budget throughout the project: After every major purchase At a specific frequency (i.e. weekly or monthly) Can use budget tracking sheet at any time to: Know if you can afford future purchases Report to your supervisor at any time

Initial Approach / Setup Using a simple spreadsheet (template): Capture all forecasted expenses for the project Equipment / Tools (capital expenses) Travel (direct expenses) Parts / Supplies / Services (direct expenses) Estimate the approximate timing for each expense Estimate the amount of shop usage required (in hours) Machining Material preparation Consultation with Grad students and/or Bill in the shop For externally sponsored capstone projects only: Graduate Student Support Shop Overhead University Overhead (5%) The total should be less than the allocated budget

Ongoing Maintenance Frequently update: Past expenses (actual amounts) Future planned expenses (best estimates) Allow for unknowns or possible rework/mistakes Continue to manage toward a target Escalate immediately if an update projection will exceed the target budget!

Example