We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Project Financial Management?

M. McGee
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Project financial management is a combination of all of the money-related parts of governing a project. In many ways, this means it is a much broader scope of accounting. Unlike common accounting, project financial management is involved at every point of the project that involves spending or taking in money. While accounting would know the salaries of the people involved, financial management would look at the time spent versus salaries as compared to the overall plan for the project. Accounting is concerned with the monetary bottom line while financial management looks at the success of the overall project and the impact it will have on the business.

The most important part of project financial management is understanding that it crosses and uses all disciplines, departments and resources. It operates on the idea that a good project, when run correctly, will be efficient, on time and under budget. Every part of the project ties back into the money spent, so by controlling it correctly, the project will operate correctly.

Unlike many monetary systems, the overall money spent is often less important than how that money is spent. If a large expenditure will speed up a portion of the project and may cost less in the future, spending more money is recommended. This applies to manpower, resources and all other aspects of the project equally. For example, hiring a poorly-qualified person for less money would not be recommended, because that worker would slow the project. On the other hand, an over-qualified worker would cost more money and would only be justified if his additional abilities were deemed important for the project.

Most projects will have a detailed accounting of time and money spent. This forms the basis of most project financial management processes. In addition to disclosed records, additional receipts may be requested or secondary audits may be performed. This collection of data is typically used by the accounting department or a specialized management department to determine overall spending practices.

While in most cases project financial management is performed by large businesses, this isn’t always the case. Financial institutions will often use a form of financial management to oversee lending strategies and determine course of action in financial crises. Non-profit organizations commonly use financial management as a way of keeping detailed track of how and why money is spent in order to conform to government regulations. Even smaller business may use these techniques to determine if a particular purchase or product line is right for them.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
M. McGee
By M. McGee , Former Writer
Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences. With a background in communication-related fields, he brings strong organizational and interpersonal skills to his writing, ensuring that his work is both informative and engaging.

Discussion Comments

M. McGee

M. McGee

Former Writer

Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences....
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.