Mohammad Al-Sarafandi, FMD Pro’s Post

💰 Take control of the financial aspect of your business. PPM Core's Cost Management Feature is made to simplify financial transactions and budgeting, making cost control an important part of your project journey. ⭐ Improved financial management ⭐ Precise budget management ⭐ Enhanced cost management 🗺️ Explore the possibilities with PPM Core ➡ https://bit.ly/3wsIwWw #ProjectOptimization #ProjectManagement #ProjectManagementSoftware #ProjectManagementTools #CostManagement #ProjectPortfolioManagement

Capital budgeting >  process of investment and measuring the implications for the business. The main goal of capital budgeting: 👇 𝗦𝗰𝗼𝗽𝗲: Identification of Potential Investments Evaluation of Investments Estimation of Cash Flows Risk Analysis Decision Making Implementation and Monitoring 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗯𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀  1. Defining Project and Assumptions  2. Identify potential investment opportunities.  3. Assumption Setting  4. Forecasting Cash Flows  5. Terminal Value  6. Calculation of Financial Indicators  7. Sensitivity analysis  8. Identify potential risks associated with the project  9. Comparison of Projects 10. Ranking Projects 11. Alignment with Strategy 12. Decision Making 13. Securing a finance funds 14. Implementation and Monitoring 15. Post-Implementation Review 𝗗𝗿𝗮𝘄𝗯𝗮𝗰𝗸𝘀 • Complexity and Time-Consuming • Uncertainty and Risk • Subjectivity in Assumptions • Long-Term Commitment • Cost of Capital Estimation Challenges • Impact of Inflation • Technology and Market Changes • Quantitative Focus • Overemphasis on Financial Metrics

Being able to manage project cast flow is part of the financial planning process in any project, and it can help determine if the project is a good investment. https://hubs.ly/Q02h3b690 Learn how to calculate and manage the cash flow in your project and establish the profitability. #projectmanager #projectmanagement #cashflow

Accurately estimate project costs to improve financial planning and reduce the risk of budget overruns. #ProjectManagement #ConstructionSoftware #ConstructionManagement #ConstructionTechnology

📝 Tips on Building a Project Finance Financial Model 📝 Building a robust project finance financial model requires careful planning and attention to detail. Here are some tips to guide you: 🔸 Understand the Project Scope: Clearly define the project, including its objectives, key stakeholders, and financial goals. 🔸Collect Accurate Data: Gather historical data, market analysis, and financial assumptions to ensure your model is based on reliable information. 🔸Build a Flexible Structure: Design your model with flexibility in mind, allowing for scenario analysis and adjustments as project conditions change. 🔸Use Consistent Formatting: Maintain consistent formatting and labeling throughout your model to ensure clarity and ease of understanding. 🔸Incorporate Sensitivity Analysis: Include sensitivity analysis to evaluate how changes in key assumptions impact the project's financial outcomes. 🔸Validate Your Model: Regularly validate and test your model to identify any errors or inconsistencies and ensure its accuracy. 🔸Document Assumptions: Keep a detailed record of all assumptions and methodologies used in your model to facilitate transparency and communication with stakeholders. By following these tips, you can build a financial model that provides valuable insights and supports sound decision-making. #FinancialManagement #BusinessEfficiency #Accounting #ProjectFinance #FinancialModeling #forecasting

About now, Finance start talking about financial planning for next year... Does anyone recognise this pattern? An iterative process of submissions 💸, revisions ♻️, and guessing 🎲 before arriving at a portfolio of projects that add up to an acceptable £Number. Except that next year when they are being delivered, everything has changed and the cost of the project that gets delivered doesn’t compare very closely with the cost of the project that was forecast. Would it work better if we prioritised the project pipeline first according to the organisation’s strategic objectives, and then adjusted the sequencing to fit inside an agreed portfolio budget? 🤔 #SafeguardingValue #InvestingInPeopleProcessAndTools #AdaptiveCapabilitiesAndServices #ContinuousImprovementMindset

Master the complexities of cash flow modelling, a crucial skill for any financial professional. This concept is pivotal in understanding how cash moves within a project or a business, influencing strategic decision-making and financial planning. What are Cash Flow Waterfalls? A cash flow waterfall, a fundamental concept in structured finance and project finance, provides a clear and structured way to handle the distribution of cash flows from a project to different stakeholders according to a predetermined sequence. Here’s how it works: 1. Revenue Collection: The process begins with the collection of operational revenues generated by the project or business activity. 2. Senior Debt Service: The first priority in the cash distribution sequence typically involves paying off senior debt obligations. These are considered the least risky investments, so they are paid first. 3. Operating Expenses: Following debt service, the next step in the waterfall is to cover operating expenses necessary to keep the project or business running. 4. Reserve Accounts: Often, cash flow models include allocations to reserve accounts, which can be used for future capital expenses or as a buffer for unexpected costs. 5. Subordinated Debt: After setting aside reserves, any remaining cash can be used to service subordinated debt, which carries more risk and thus stands lower in the priority of payment. 6 (and last!). Equity Distributions: Lastly, any residual cash flows are distributed to equity investors, who typically accept higher risks in exchange for potential higher returns at this final stage of the waterfall. Understanding cash flow waterfalls is essential for financial modelling because it helps predict the ability of a project to meet its financial obligations and provides insights into the risk and return profile for various stakeholders. By mastering cash flow models, financial professionals can better assess the viability and stability of projects and make informed strategic decisions. #CashFlow #FinancialModelling #FinanceEducation #ProjectFinance #InvestmentStrategy #BusinessStrategy

💸 A Driving force for a project’s success is its financial performance, which can be achieved through better Forecasting & Budgeting. Our experts can help you in forecasting project expenditures, keeping in mind about different costs involved including direct cost, indirect cost, materials cost, equipment cost, operational cost, capital costs, overheads and profits, and contingencies. Connect with us so we can you with better forecasts. 📞 (866) 504-6726 📧 info@inscope.team #InscopeTeam #SmallBusiness #ProjectManagement #RemoteProjectPlanning #ProjectPlanning #ProjectDevelopment #ProjectForecasting

About now, Finance start talking about financial planning for next year... Does anyone recognise this pattern? An iterative process of submissions 💸, revisions ♻️, and guessing 🎲 before arriving at a portfolio of projects that add up to an acceptable £Number. Except that next year when they are being delivered, everything has changed and the cost of the project that gets delivered doesn’t compare very closely with the cost of the project that was forecast. Would it work better if we prioritised the project pipeline first according to the organisation’s strategic objectives, and then adjusted the sequencing to fit inside an agreed portfolio budget? 🤔 #SafeguardingValue #InvestingInPeopleProcessAndTools #AdaptiveCapabilitiesAndServices #ContinuousImprovementMindset

Navigating the financial landscape in construction can be daunting. Here are some key challenges: - Cash Flow Management: Balancing significant upfront investments against delayed client payments often results in cash flow gaps. - Cost Tracking: Inadequate tracking of project costs can lead to budget overruns and diminished profitability. - Complex Reporting: Meeting regulatory and standards compliance demands precise and thorough financial reporting. - Manual Processes: Reliance on manual processes increases the risk of errors and is time-consuming. Tackle these challenges head-on with effective financial management strategies and expert guidance from DAAXIT's Fractional CFOs. Let us help you streamline your financial operations and boost your profitability. #ConstructionFinance #FinancialManagement #DAAXIT #FractionalCFO