A structured document designed to estimate and control the monetary resources required for a project’s completion. This tool typically encompasses various cost elements, such as labor, materials, equipment, and overhead. An example is a spreadsheet outlining task breakdowns, associated hourly rates, material quantities, and resulting expenses, providing a summarized total anticipated expenditure.
Accurate financial forecasting is vital for successful venture management. It enables informed decision-making, assists in securing funding, and facilitates performance tracking against budgetary limits. Historically, these tools evolved from simple manual calculations to sophisticated software solutions capable of handling complex financial models and scenarios. The resulting benefits are improved budget adherence, enhanced profitability, and decreased risk of overspending.