Project Management Accounting

by Kevin R. Callahan (PMCi ); Gary S. Stetz; Lynn M. Brooks

• ISBN13: 9780470044698
• ISBN10: 0470044691
• Format: Hardcover
• Copyright: 2007-04-01
• Publisher: Wiley

Summary

Praise for Project Management Accounting: Budgeting, Tracking, and Reporting Costs and Profitability "You don't need to be a Six Sigma Black Belt or a CPA to understand the principles and the practical tools presented by Callahan, Stetz, and Brooks in Project Management Accounting. Their approach focuses on sound financial practices that will improve the ROI of your project whether it is your first or your hundred-and-first experience." -Barry Van Dyck, PhD Director of Degree Programs, Executive Education, Mendoza College of Business, University of Notre Dame "Project Management Accounting serves as a solid resource for the project manager seeking to leverage the tools of accounting and finance to maximize the quality of project outcomes." -Jeffrey J. Lampe, CFA Vice President, Hopewell Ventures "Project Management Accounting clearly communicates fundamental accounting principles and applies them skillfully to the field of project management . . . even seasoned accounting managers will likely benefit from the application to project management. Talented project managers will find enough finance and accounting tools to transition toward profit and loss responsibility. This book will serve as a handy reference." -Warren Davidson CEO, Global Source Mfg. "This is a must-read for everyone in business, whether you have made a career in project management, operations, facilities, or anywhere else. Project Management Accounting provides the framework to understand not only how to manage any project, but how the project interacts with the different functions of the company for the overall good. When applied, [this book] will improve the profitability of the company through an understanding of the costs and benefits of each project." -Michael Alte Management Director, ArvinMeritor Today's project managers need to understand finance and accounting concepts in order to make both informed decisions and a greater contribution to their organization. Written for readers with limited business backgrounds, Project Management Accounting is an invaluable guide to successfully performing projects using sound finance and accounting concepts. With the collected insights of authors and respected industry experts Kevin Callahan, Gary Stetz, and Lynne Brooks, Project Management Accounting offers guidance that project managers can use right away to know how to budget appropriately. Brief in presentation and rich in content, Project Management Accounting equips the leaders of today and tomorrow to hit the ground running with a profound business perspective in their current work and in future projects.

Author Biography

Kevin R. Callahan, MBA, PMP, is currently a Special Advisor to the CEO and Director of the Project Management Office at Learning Point Associates, a not-for-profit educational research company. He cofounded the Project Management Consortium that specializes in corporate transformations. A noted trainer andspeaker, he has addressed audiences at Project World, APICS, PMI, the Open Air Users Association, and others, and is a guest lecturer at DePaul University and the University of Illinois at Chicago.

Gary S. Stetz, MBA, CPA, CFE, is a cofounder and partner in the firm of Stetz, Belgiovine, and Manwarren (SBM), an accounting firm specializing in accounting, taxation, management advisory services, financial planning, and litigation support services.

Lynne M. Brooks, PMP, is a Client Training Manager at Sears Holdings Corporation in Hoffman Estates, Illinois. In her role at Sears, she manages a group of performance consultants who identify performance improvement solutions for the Home Services organization. She has successfully managed projects for clients ranging from Fortune 100 to startup companies within the petroleum, marketing, telecommunications, systems/software development, e-commerce, retail, and financial fields. She has a master's degree in instructional technology and attained certification as a Project Management Professional (PMP).

Table of Contents

Preface

Project Management and Accounting

Mission, Objectives, Strategy

Project Planning

Project Execution and Control

Finance, Strategy, and Strategic Project Management

DuPont Method

Accounting, Finance, and Project Management

Project Team and Financial Success

Calculating Return on Investment

STO Solution Model

Implementing Strategy throughout the Company

Conclusion

Cost

Definition and Purpose of Cost

Cost Classifications

Cost Decisions

Cost of Quality

Cost and Industry

Conclusion

Project Financing

Debt Financing

Equity

Income Tax Effect

Cost Implications of the Funding Methodology

Conclusion

Project Revenue and Cash Flows

Role of the Financial Manager

How to Calculate the Statement of Cash Flows for a Company

Free Cash Flows

Methods for Calculating a Project's Viability

Conclusion

Creating the Project Budget

Introduction

Case Study: Pontrelli Recycling, Inc

Planning for the Future

Creating a Project Budget

Review Project Financials

Project Cash Flow

Conclusion

Index

Table of Contents provided by Publisher. All Rights Reserved.