Project Management Accounting, with Website Budgeting, Tracking, and Reporting Costs and Profitability

by Callahan, Kevin R.; Stetz, Gary S.; Brooks, Lynne M.

• ISBN13: 9780470952344
• ISBN10: 0470952342
• Edition: 2nd
• Format: Hardcover
• Copyright: 2011-06-28
• Publisher: Wiley

Summary

Helping project managers figure out how costs interact with the general ledger as well as make decisions about whether to continue with the project as planned, this book reveals how project expensing should be capitalized or expensed in order to keep the budget on track and improve profitability. This book helps business professionals determine the greatest tax/cost savings by through understanding what portion of the project can be capitalized. Along with new case studies, new material has been added on risk assessment of managing projects.

Author Biography

KEVIN R. CALLAHAN, MBA, PMP, is the founder and Chief Bulldog at The COO's Bulldog, where he specializes in helping small companies find and fix problems in their operations and entrepreneurs build their back offices.

GARY S. STETZ, MBA, CPA, CFE, CFF, ABV, is the cofounder and partner of Stetz, Belgiovine, and Manwarren (SBM). Mr. Stetz is also a director and cofounder of Allegiance Community Bank.

LYNNE M. BROOKS, PMP, is an Education Manager in the Education and Publications Group at the College of American Pathologists where she applies Project Management in developing Continuing Medical Education for physicians.

Table of Contents

Preface	p. xi
Acknowledgments	p. xv
Project Management and Accounting	p. 1
Mission, Objectives, Strategy	p. 2
Project Planning	p. 6
Project Execution and Control	p. 11
Notes	p. 21
Finance, Strategy, and Strategic Project Management	p. 23
DuPont Method	p. 24
Note	p. 44
Accounting, Finance, and Project Management	p. 45
Project Team and Financial Success	p. 46
Calculating Return on Investment	p. 53
STO Solution Model	p. 59
Implementing Strategy throughout the Company	p. 61
Conclusion	p. 68
Notes	p. 69
Cost	p. 71
Definition and Purpose of Cost	p. 73
Cost Classifications	p. 74
Cost Decisions	p. 80
Cost of Quality	p. 83
Cost and Industry	p. 85
Manufacturing Industry	p. 89
Conclusion	p. 90
Note	p. 91
Project Financing	p. 93
Debt Financing	p. 93
Corporate Bonds	p. 95
Equity	p. 97
Income Tax Effect	p. 99
Cost Implications of the Funding Methodology	p. 100
Conclusion	p. 112
Project Revenue and Cash Flows	p. 115
Role of the Financial Manager	p. 115
How to Calculate the Statement of Cash Flows for a Company	p. 119
Free Cash Flows	p. 127
Methods for Calculating a Project's Viability	p. 128
Conclusion	p. 137
Notes	p. 139
Creating the Project Budget	p. 141
Introduction	p. 141
Case Study: Pontrelli Recycling, Inc.	p. 142
Planning for the Future	p. 147
Creating a Project Budget	p. 157
Review Project Financials	p. 161
Project Cash Flow	p. 162
Conclusion	p. 168
Note	p. 169
Risk Assessment	p. 171
Risk to Your Reputation	p. 175
Competency	p. 176
Integrity and Honesty	p. 177
Organizational Structure	p. 178
Human Resources	p. 179
Reports on Financial Statements	p. 180
Project Specific Risk	p. 197
Engagement Acceptance	p. 199
Conclusion	p. 200
About the Web Site	p. 201
Index	p. 203
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