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Telephone: 0118 321 5030 | Login | Register

Financial Management for Project Managers


Project profitability is not simply measured as a function of benefit less costs: rather it is better defined as return on investment. This means that to allow the project team to be in control of, and improve, profitability, they must be able to understand and control not just benefit and costs, but also the investment (i.e. cash) invested in their project. The objectives of this course are to give them the tools and knowledge to do this.


This course is aimed at project managers and other project team members.

This course will enable project managers and team members to:

  • See their projects as financial business units within the organisation
  • To understand the terminology and concepts of financial management and be able to relate them to their own projects
  • To understand and be able to use key financial tools
  • To apply these financial concepts and tools in order to increase project and therefore Company profitability
  • Each concept and tool will be demonstrated and practiced using real-life company examples


  1. Introduction: projects and the bigger picture
  2. Financial Concepts
  3. Financial Analysis
  4. Asset Management
  5. Project Governance
  6. Pricing/ Costs and the Contract
  7. Cost Estimating and Forecasting
  8. Lessons Learned and Action Plans
 Agenda Item  Content
 1. Introduction: projects and the bigger picture

• The project as a business unit.

• Why project staff should be concerned with the financial picture rather than (as traditionally) simply costs.

 2. Financial Concepts

• The terminology and principles of finance:

• Generally Accepted Accounting Principles (GAAP)

• Recognising revenue and matching costs

• Accruals

• Profit & Loss, Balance Sheet, Cash Flow using Ericsson Project Governance

• Case Study/ Exercise Ericsson Governance

 3. Financial Analysis

• Applying financial ratios to interpret financial reports

• Ratios as used in Ericsson Project Governance

• Case Study/ Exercise

 4. Asset Management

• Cash is King!

• Importance of cash flow

• Billing and Recognising Revenue

• Managing Accounts Receivable

• Managing Work In Progress

• Managing Inventory

• Fixed Assets

• Case Study/ Exercise

 5. Project Governance  • How revenue, costs, profit and cashflow (incl. inventory, wip, debtors etc) are reported and what the reports mean.
 6. Pricing/ Costs and the Contract

• The Pricing Process

• Understanding where costs may be hidden in the contract

• Importance of the contract in determining price and payment terms.

• Case Study/ Exercise

 7. Cost Estimating and Forecasting

• Principles of costing

• Cost estimation

• PMBOK 4th Edition: 7.1.2 Estimating Costs: Tools & Techniques 7.2.2 Determining Budget: Tools & Techniques

• Forecasting techniques

• Cashflow forecasting – Using Discounted Cashflows, Economic Value Added.

• Case Study/ Exercise

 8. Lessons Learned and Action Plans • Lessons Learned and Action Plans.

About Parallel

We give all of our clients a personal service, blending traditional and modern learning techniques to deliver a flexible training solution. We are a small and specialist project management training provider with a global reach. Our consultants are best in class and are equally at home delivering off the shelf courses or a solution tailored to your specific needs. We have designed this website to give you a flavour of what we do. If you like what you see, please do get in touch to discuss how we can support your organisation.