Definition
A budget is a comprehensive outline of revenue, profit, cost and other key financial metrics of your project.
It is where you define which services you offer to a client and at which rate/price.
Once set up, your team can then track their time against those services, they can be scheduled for these services in the Resource Planner, and they can log expenses (eg. if you hired a contractor, bought licenses or paid for catering) as the work progresses.
To learn more about creating and setting up budgets, check out this article.
Accessing Budgets
You can access all your budgets in Financials > Budgets.
Alternatively, if you're looking for budgets tied to a specific project, navigate to Project management > Projects > Your project > Budgets tab.
Creating Multiple Budgets
Projects can have multiple budgets, allowing you to break down complex work into manageable phases or stages.
For example, you could have separate budgets for the design, development, and maintenance phases of a website-building project. This flexibility ensures precise financial tracking for each project phase.
Budget Scenarios
The Scenario Builder lets you quickly prototype different budget and deal scenarios, assessing their costs, profitability, and resource needs before committing to the most suitable plan.
Budgets and Invoices
Budgets are directly linked to invoicing. The data on invoices is automatically populated based on the information set and spent in the budget. This connection between budgets and invoices ensures accurate billing and efficient financial management.
Note: an invoice can't be created without a budget!
You'll receive notifications when a budget needs invoicing, keeping you informed at all times.
Reports
Once your budget is set up and in use, you can gain valuable insights through reports.
Reports provide detailed information such as time spent on the budget, estimated time, billable time, total revenue, costs, current profit, profit margin, and more.
Access pre-made budget-related reports in the Reports library or create custom reports using the Budgets data source.
Good to Know: Budget Hierarchy
Productive structures work in a clear hierarchy, helping maintain both productivity and organization. Understanding this structure is key to managing your project’s financials efficiently.
By organizing budgets into clear sections and services, you ensure accurate tracking of costs, revenue, and team efforts.
This structured approach not only simplifies invoicing and reporting but also helps maintain clarity and control over every aspect of your project’s finances.
Client Company
The organization, referred to as "Company" in Productive, that commissions and compensates you for your work. You select the company when setting up the budget.
Budgets
These represent the overall financial agreement for the client project. For example, if you're managing a marketing campaign for a client, the budget will outline the anticipated revenue, profit, and costs.
Budget Sections
Each budget is divided into sections that categorize different financial elements. These sections might include Personnel Costs, Tools, and Social Media Ads, where you allocate funds specifically for these activities.
Services
Within each budget section, you have specific services that your employees or contractors will work on.
For example, within the Social Media Ads section, the services could include Ad Design, Copywriting, and Ad Placement.
Employees and contractors will track their time and log expenses against these services.
