AEC 06 CHAPTER 6

PROJECT MANAGEMENT TOOLS

Prepared by:
DANILYN A. FLORES

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LEARNING OUTCOMES
By the end of the module, students should be able to:

➢Understand the fundamentals of project management

➢Use project management tools to plan, track, and report accounting-related projects
➢Apply scheduling, budgeting, and resource allocation techniques
➢Collaborate effectively using digital platforms

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INTRODUCTION TO PROJECT
MANAGEMENT
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 PROJECT MANAGEMENT (PM)
Project management is the
application of
➢processes,
➢methods,
➢skills,
➢knowledge, and
➢experience
to achieve specific project objectives
according to the project acceptance
criteria within agreed parameters.

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KEY DISTINCTIONS

Operations: Ongoing, repetitive

activities (e.g., daily expense
processing, weekly payroll).
Project: A temporary endeavor,
having a defined beginning and end,
undertaken to create a unique
product, service, or result (e.g.,
implementing new ERP software,
conducting an annual audit).

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KEY DISTINCTIONS

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THE TRIPLE CONSTRAINT

The Project Management Triangle

Successful project delivery requires
balancing three core, inter-
dependent constraints. Changing
one often impacts the others.

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 THE TRIPLE CONSTRAINT
Constraint Definition Impact on Accounting Projects
Defining which departments/regions
What the project must
Scope are included in a new budgeting
accomplish (deliverables).
system implementation.
Time The duration needed to Fixed deadlines like regulatory filing
(Schedule) complete the project. dates or the fiscal year-end close.
Tracking internal labor costs, external
Cost (Budget) The financial resources required. consultant fees, and software licenses
against the approved budget.
(Often sits in the middle)
Ensuring the audit report is accurate
Quality Meeting defined requirements
and compliant with GAAP/IFRS.
and standards.
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RELEVANCE TO ACCOUNTING
Accounting-Related Projects Require Project Management: Accountants are
constantly involved in projects, whether they realize it or not.

Project Type Scope (What is the unique result?)

Annual Audit / Tax Completing the audit and delivering the final
Filing report to stakeholders/regulators by the deadline.
Selecting, configuring, and rolling out a new

ERP Implementation Enterprise Resource Planning system (e.g., SAP,

Oracle, NetSuite).
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RELEVANCE TO ACCOUNTING
Project Type Scope (What is the unique result?)

Coordinating inputs from all departments and

Budgeting Cycle
finalizing the annual organizational budget
document.

New Regulatory Implementing new policies, software, and processes to

Compliance comply with a new standard (e.g., ASC 842 Lease
Accounting).

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RELEVANCE TO ACCOUNTING
Why PM Skills are Essential for Accountants:

☺ Better control,
☺ Reduced surprises,
☺ Adherence to fixed deadlines, and
☺ Minimizing budget overruns.

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ICE BREAKER
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OVERVIEW OF PROJECT
MANAGEMENT TOOLS
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 Digital PM Tools Overview
Modern PM tools are cloud-based platforms designed for collaboration, not just
scheduling.
Best Used For (in
Tool Primary Focus
Accounting)

Task management, visual Tracking month-end close

Trello / Asana / ClickUp
workflow, team tasks, audit request lists,
collaboration. minor system upgrades.

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 Digital PM Tools Overview
Best Used For (in
Tool Primary Focus
Accounting)
Microsoft Project Large-scale ERP
Complex scheduling,
implementation, multi-
resource leveling, critical
year infrastructure
path analysis (Gantt).
projects.
Budgeting, detailed data Supplementary to PM
Spreadsheets
tracking, basic cost tools for financial
(Excel/Sheets)
variance analysis. oversight.

Choose the tool that matches the project's complexity. For most internal accounting
projects, a visual tool like Trello or Asana is ideal.
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VISUALIZING WORK: GANTT CHARTS
A Gannt Chart is a bar chart that illustrates a project schedule. It shows the start
and finish dates of the terminal elements and summary elements of a project.

Key Features:
1. Tasks: Listed vertically.
2. Timeline: Listed horizontally (days, weeks, months).
3. Dependencies: Arrows show which tasks must finish before others can start
(e.g., "Review Trial Balance" must precede "Prepare Financial Statements").

Used for complex projects where scheduling and dependencies are critical, such
as building the timeline for an M&A due diligence process.

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VISUALIZING WORK: GANTT CHARTS

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VISUALIZING WORK: GANTT CHARTS

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VISUALIZING WORK: KANBAN BOARDS
A Kanban Board is a workflow visualization tool that helps limit work-in-progress
(WIP). It uses columns (workflow stages) and cards (tasks).

Typical Accounting Columns:

✓ To Do
✓ In Progress (WIP Limit: 3)
✓ Review/Approval
✓ Done

Used for routine, high-volume, workflow-based projects like managing the process
of reviewing and approving fixed asset additions or tracking audit responses.

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VISUALIZING WORK: KANBAN BOARDS

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VISUALIZING WORK: KANBAN BOARDS

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What do the letter "t"
and an island have in
common?

They're both in the

ICE BREAKER middle of water.
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PLANNING AND SCHEDULING
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 CREATING PROJECT TIMELINES
Phase 1: Work Breakdown Structure (WBS)

Break the entire project scope into smaller,

manageable deliverables.

Example (ERP Implementation):

Phase 1: Needs Assessment
Deliverable: Functional Requirements
Document Tasks: Interview Dept. Heads,
Document AS-IS Process.

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CREATING PROJECT TIMELINES

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 CREATING PROJECT TIMELINES
Example:
Phase 2: Estimating Duration
Imagine a software development team needs to estimate the
time it will take to develop and test a new user login feature
Use expert judgment or historical for their application
data.
Based on past experience and expert judgment, they come up
with the following three estimates:
The Three-Point Estimate: Estimate Optimistic (O): 4 days
the Optimistic (O), Pessimistic (P), and This is the best-case scenario: Everything goes smoothly, no
Most Likely (M) time for a task. unexpected bugs, and the team is fully focused.
Most Likely (M): 7 days
This is the most realistic scenario: It accounts for typical
Simple Average: (O + M + P) / 3 minor issues, code reviews, and standard testing.
Pessimistic (P): 13 days
This is the worst-case scenario: Significant technical
challenges arise, key team members are delayed, or
complex integration issues occur.

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 CREATING PROJECT TIMELINES
The team uses the Simple Average formula: (O + M + P) / 3
Phase 2: Estimating Duration
[Link] the values:
(4 days + 7 days + 13 days) / 3
Use expert judgment or historical
data. [Link] the estimates:
24 days / 3
The Three-Point Estimate: Estimate [Link] the Simple Average:
the Optimistic (O), Pessimistic (P), and 8 days
Most Likely (M) time for a task.
Conclusion
The estimate for developing and testing the new
Simple Average: (O + M + P) / 3 user login feature is 8 days. This average provides a more
balanced duration than just picking the "Most Likely" estimate,
as it factors in both risk and ideal conditions.

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 TASK DEPENDENCIES AND MILESTONES
Task Dependencies: The relationship between tasks where the start or finish of one
task is reliant on the start or finish of another.

Type Definition Example (Audit)

Task B cannot
Finish-to- start until Task A A: Gather Bank Statements
Start (FS) finishes. (Most B: Reconcile Cash Accounts
common)
Task B cannot A: Start Data Entry
Start-to-Start
start until Task A B: Start Initial Data
(SS)
starts. Verification

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 TASK DEPENDENCIES AND MILESTONES
Milestones: Significant points or events in the project. They have zero duration and
mark a major achievement.

Accounting Examples:
"Final Budget Approved,"
"ERP User Training Completed,"
"External Audit Fieldwork Signed Off."

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RESOURCE ALLOCATION AND WORKLOAD
BALANCING
Resources in Accounting PM:
1. Human: Staff time (accountants, analysts, consultants).
2. Financial: Project budget (covered in Module IV).
3. Equipment/Tools: Software licenses, server capacity.

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RESOURCE ALLOCATION AND WORKLOAD
BALANCING
Workload Balancing (Resource Leveling):

Goal: To smooth out peak demand periods for key

resources to prevent burnout and delays.

Example: You have three tasks assigned to one

Senior Accountant, all due next Tuesday. You must
shift the lower-priority tasks to the following week
to level their workload.

PM tools allows to view resource utilization

dashboards to spot over-allocation instantly.
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What has four fingers
and a thumb, but is
not living?

ICE BREAKER Glove

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BUDGET AND COST TRACKING
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 ESRTIMATING PROJECT COSTS
Bottom-Up Estimating
The most accurate method.
Estimate the cost of every granular task in the
WBS and then roll them up to the total project
cost.

Example: ERP Implementation Cost Estimate

Total Task Cost = (Internal Labor Hours * Rate) + (Consultant Fees) + (Software License Cost)

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 ESRTIMATING PROJECT COSTS
Contingency Reserve

A dedicated portion of the budget to cover

known risks (e.g., potential need for extra
cleanup work).

Rule of Thumb: 5% to 10% of the total

budget, depending on risk assessment.

This is NOT a slush fund; it's managed by the

project manager.

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ESRTIMATING PROJECT COSTS
Methods for Calculating Contingency Reserves

1. Expected Monetary Value (EMV) Analysis – a common quantitative risk

analysis technique, especially for projects with identified risks.

2. Percentage of Estimated Cost - the simplest and often the most common
method, especially for smaller or less complex projects, or in the early
stages of a project.

3. Monte Carlo Simulation - a more sophisticated, probabilistic technique

typically used for large or highly complex projects.

4. Analogous and Parametric Estimating - rely on data from past projects.

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 TRACKING VS. PLANNED EXPENSES
Financial Oversight is an Accountant's PM superpower.

Baseline: The original, approved project budget. This should never change unless
formally approved (Change Request).

Variance Analysis: At regular intervals (weekly/monthly), compare:

Actual Cost (AC): The money spent so far.
Planned Value (PV): The amount budgeted for the work completed to date.
Earned Value (EV): The value of the work actually performed.

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 TRACKING VS. PLANNED EXPENSES
Cost Variance (CV): EV – AC

If CV < 0: The project is over budget (a problem!).

If CV > 0: The project is under budget (good!).

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 USING PM TOOLS FOR FINANCIAL OVERSIGHT
While accounting is done in the GL, PM tools
help monitor project expenditure in real-time.

Integration Points:

Budget Entry: Enter the top-level approved budget directly into the PM tool.
Expense Tracking: Link project tasks to specific budget line items. Team members
can log consultant hours or hardware purchases against a task.
Reporting: Generate reports that show the remaining budget allocated to
incomplete tasks.

Example: In an ERP project, ClickUp could track the hours logged by the
configuration team against the "Module Setup Budget," providing an immediate
alert when usage exceeds 80% of the allocated amount.
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MONITORING AND REPORTING
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 STATUS UPDATES AND PROGRESS TRACKING
Why Monitor? To ensure the project is on track (schedule, scope, budget) and to
identify issues early.

Key Tracking Metrics:

1. Schedule Performance: Are tasks being completed on time? (Can be tracked via
Gantt charts or Kanban lead times).
2. Scope Creep: Has any unapproved work been added?

Accountant's role: Vetoing or formally documenting change requests that add

cost/time.

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 STATUS UPDATES AND PROGRESS TRACKING
3. Budget Consumption: (As discussed) Tracking cost variance.

Communication is Key: Status meetings should be brief and focused on

exceptions (what is late/over budget) rather than just listing everything completed.

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 RISK IDENTIFICATION AND MITIGAGTION
Risk: An uncertain event or condition that, if it occurs, has an effect on a project
objective (scope, schedule, cost, quality).

Mitigation: Taking action to reduce the probability or impact of the risk

(proactive).

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 RISK IDENTIFICATION AND MITIGAGTION
The Risk Register (or Log): A document/section in the PM tool that tracks risks.

Impact Probability
Risk ID Description Mitigation Strategy
(H/M/L) (H/M/L)
Identify and vet a backup
Key external auditor falls ill
R-001 High Medium senior manager at the audit
before fieldwork starts.
firm.
Build a 2-week buffer into
New tax law is enacted during
R-002 High Medium the final regulatory sign-off
the project timeline.
task.

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 GENERATING REPORTS FOR STAKEHOLDERS
Tailor the Report to the Audience.
Audience Report Focus Key Metrics to Include
Stoplight Status
High-level status, strategic (Red/Yellow/Green), Cost
Executive Sponsors
alignment, financial health. Variance, Milestones
Completed.
Task details, specific risks, Task Status (Kanban), Due
Project Team Members
upcoming workload. Dates, Dependency Alerts.
Hours Logged vs. Budgeted
Resource allocation, budget
Functional Managers Hours, Over-allocated
consumed by their team.
Resources.
PM tools automate this. Accountants are often the verifier of the financial data presented in these status reports.
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COLLABORATION AND
COMMUNICATION
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 ASSIGNING ROLES AND RESPONSIBILITIES
Clarity avoids confusion and prevents tasks from falling through the cracks.

RACI Matrix: A tool to clarify roles for project deliverables.

Consulted
Responsible Accountable Informed
(Give input
Role (Who does the (Who owns the (Receive
before
work) decision/result) updates)
decision)
Deliverable:
Budget Department
Final Budget CFO Project Sponsor
Analysts Heads
Report

In PM Tools: Every task must have one clear owner (the Responsible party).
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 USING SHARED BOARDS AND CALENDARS
The PM Tool as the Single Source of Truth:

1. Shared Boards (Kanban/Gantt): All team members must track their progress
directly in the shared tool.
Rule: If it's not on the board, it doesn't exist.
2. Shared Calendars: Use the tool's integrated calendar features to display key
milestones, status meetings, and deadlines.
3. Comments: All task-related communication (clarifications, decisions, file links)
should be kept in the task comment thread in the PM tool, not in scattered
emails.

Benefit: Drastically reduces reliance on email, making information easier to find for
new team members or during project audits.
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 DOCUMENTING DECISIONS AND CHANGES
The Importance of Audit Trails: As accounting professionals, documentation is
paramount. Project management is no different.
Change Management: Any requested change to the scope, time, or cost baseline
must be formally documented.
Document Type Purpose Example
Records key choices made during the Decision to use Vendor A over Vendor B for
Decision Log
project. software because of lower long-term TCO.
Request to add 4 weeks to the schedule
Change Request Formal request to modify the project
because a key regulatory document was
Form baseline.
delayed. Must include justification.
Summarizes final performance, lessons Final report confirming the tax project
Project Closeout
learned, and documents that achieved 100% compliance and was
Report
objectives were met. $5,000 under budget.

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SUMMARY
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 KEY TAKEAWAYS FOR FUTURE ACCOUNTING LEADERS
1. Project vs. Operations: understand the difference; most of the
high-impact work is a project.
2. The Triple Constraint: must manage Scope, Time, and Cost
simultaneously.
3. Accounting Focus: the unique strength is Cost Tracking and
Budgeting. Use PM tools to track actual expenditures against the
planned WBS cost.
4. Clarity: Always define clear roles (RACI) and use a shared digital
platform for collaboration.

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ACTIVITY: CASE STUDY
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REFERENCES
Project Management Institute. (2021). A guide to the project management body of
knowledge (PMBOK guide) (7th ed.). Project Management Institute.
Dorfman, M. S., & Haspel, J. (2018). Introduction to project management. J. Ross
Publishing.
Kerzner, H. (2019). Project management: A systems approach to planning, scheduling,
and controlling (12th ed.). Wiley.
Horngren, C. T., Datar, S. M., & Rajan, M. V. (2022). Cost accounting: A managerial
emphasis (17th ed.). Pearson Education.
Robbins, S. P., & Judge, T. A. (2021). Organizational behavior (19th ed.). Pearson.

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THANK YOU! #GREATUSM

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