Mastering Your Budget with RedTeam

Take your budget to the next level by implementing these best practices.

Budgeting can be one of the toughest parts of any construction business—how do you stay on track, keep detailed records, and turn a profit all while making the client happy? If you’re not using the right budgeting software (or not using a program at all), it’s nearly impossible.

What we'll go over:

Correctly planning your budget can help lead to better budget management. While you may have a general idea of how much money flows in and out, it’s worth taking a closer look.

Compare real costs to your estimates.

Along with the ability to view your contingency costs, RedTeam’s software also generates an Over/Under column that shows you whether you hit, went above, or went below your estimates. Your company can use this information to improve future estimates and provide accurate billing breakdowns to clients.

Track Buyouts.

After you start making decisions and buying out subcontractors, labor, materials, equipment, etc., you can move items from the At Risk column to the Open column. As you pay invoices for items in the Open column, you’ll be able to switch each into the Actual column (money you’ve already spent).

Simplify Project Budgets with RedTeam.

With RedTeam’s construction project budgeting software, anyone on your team will be able to see the project’s financials broken down into commonsense categories: Budget, At Risk, Open, Actuals, Contingency, and Complete. Below we explain how each one factors into your project’s timeline.

Plan Well to Avoid Losing Money.

Correctly planning your budget can help lead to better budget management. While you may have a general idea of how much money flows in and out, it’s worth taking a closer look.

You start with an estimate that becomes a budget. Then a buyout follows to establish committed expenses like subcontractors, materials, labor, etc. Each of these steps can leave room for error (and lost money) if you don’t have a detailed plan. While it’s a little more work on the front end, it’ll save you lots of money in the long run.

Track Cash Flow for Every Project.

When you’re planning, executing, and wrapping up your project, your team should know exactly where the money is. You should understand what you paid, owed, committed, need to buy (at risk), and might have to buy in a worst-case scenario (contingency costs).

The “need to buy” category is one of the trickiest when mapping out a project’s budget. A great project manager will continuously monitor these at-risk costs to avoid going over the original estimate. However, other team members may not be as cautious (especially if there’s that information silo we mentioned earlier).

Mastering Your Budget with RedTeam

Take your budget to the next level by implementing these best practices.

RedTeam’s intuitive budgeting software can help you accomplish each of the above tips with no extra effort on your part. Check out our success stories, or see for yourself how easy mastering a budget can be with RedTeam.

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