Nobody questions the unit that beats budget

Anyone who's gone through a monthly close unit by unit knows this. The units below budget get the questions. The one that beats it gets a nod. Whether the work behind it can be billed only shows project by project, and nobody has those hours before the leadership meeting.

One case on our Try page: an engineering firm's October close by unit. Yesper read the unit P&Ls against the contract value reports. A geotechnical unit beat budget by $60,700, on lump sum projects where earned value sits $70,350 above contract value. Capped at contract value, it lands below budget.

WIP that can't be billed comes up at the close, while there's time to get an amendment or stop charging hours. Otherwise it's a year-end write-down. Same for the rest of the Try page: the month-end portfolio review, one project's overrun before the client meeting, the AP approval queue.

Try it yourself →