Whether you are going to start a new business or a new project, you are always in the need to know the exact cost. People with limited budget and resources should always track the cost of the project they are going to start in advance.
As a matter of fact, every good businessman knows the financial health of the business when he starts producing goods or starts a new product. Knowing the financial position always benefits the person because it helps him face the expected things more efficiently.
In any business, the cost plays a vital role and estimation or analysis of the cost is the major function of the relevant department and if you are going to run a project then also cost tracking plays an important role in advancement. The finance or project manager has a major responsibility to track the relevant cost.
What is cost tracker?
Cost tracker is an effective tool that is used to get the cost related information of the undergoing project. Basically, cost tracker is a spreadsheet document that helps a business track the cost of the production on a daily, weekly and monthly basis. Since the results obtained from cost tracker are what matter the most, the spreadsheet of cost tracker should be up to date and highly productive.
Cost tracker can be used in a number of ways. The cost tracker spreadsheet works in the best way for you as you keep it ensured that you have enough money to undergo the production and you know what you are tracking.
Measuring and checking all the cost throughout the operation or project is a lengthy task. It determines whether the project or the operation could be completed in the assigned time within the budget or the company will run out of the budget and could not be able to finish the task on time. The cost-tracking it is important to ensure that the project management costs are recorded and analyzed regularly. Calculating the cost, maintaining the budget and controlling the variable parameters all come under the cost tracking. Thus cost tracking has to be done in the following steps
- identifying all projected costs
- Precise estimation of the cost
- A complete budget formulation
- Tracking the procedure cost
- Controlling the variables
The predictable amount of the returns, comparisons of the budget with other company’s budgets and report formulation are all made easy through effective cost tracking parameters.
The cost trackers calculate a total for all costs as well as the calculation of the total per cost of an item. It will help you make a pause on expenses which are out of reach. These trackers are presented here as online free templates and you can download them to customize your readings and figures, which are then, calculate to track the actual cost.
What should be included in the cost tracker spreadsheet?
This sheet should include the following things:
- The item you are producing should be introduced in the cost tracker with an account number. The accounting department assigns an account number.
- The total budget you have assigned to the undergoing production should be mentioned.
- The actual amount being spent on production should be written on the sheet.
- The cost tracker should also be provided with the description of the items being produced.
- An estimate to know how much it would cost you to deliver the final product to your clients. If your actual cost is rising than the planned one, you should make an estimate again.
- The details of the purchase order should be added to the tracker. The amount your business will be earning is useful information for a tracker.
Download your file below.
Product Cost Tracker Template
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