Project Management has become so Financially Sensitive that all Essay

Project commission has become so Financially Sensitive that all Project Managers should be Qualified Accountants - Essay ExampleThis essay examines the point that Whether or not a cast off theatre director has to be a qualified accountantA project is a team work and every single individual has to play his own part in it to utmost faith. Finance is very strategic for the success or failure of a project. In fact finance is the life blood of every project. So it becomes imperative that the project manager must(prenominal) have knowledge of the financial aspects of the project. He will be able to direct in a better way the accountants if the project manager is a qualified accountant.If a project manager has to function effectively then he/she has to understand every aspect of cost and also the timing with interpret to recognition of cost. Cost ventures both the project and also the financial performance of the corporate. The project managers duty is to be aware of the various cost perceptions and way in which they have to be reported. This knowledge will help the project manager to control the cost of goods sold which is his/her sole financial responsibility. The project manager gouge also control the timing of cost so that cash flow and the total cost of the project improves. Apart from this he can also affect revenue expenses and its report in the Profit and Loss statement (Project focusing Journal, June 1986, p372).The different organizational goals which require continuous improvement in the quality of service and goods supplied to a customer through close customer relationships has contributed to this changing environment. Project managers should therefore understand and be aware of the various financial aspects of a project (Lundsten, David J 2006).The field of Project Managers is developing rapidly. This field now has its own professional body, the Project Management Institute (PMI), and its own professional certification, Project Management Profess ional (PMP). A project managers task is to hand over the project on time and also within the prescribed budget. Most project managers get hold they are responsible towards the firms profitability only to the extent and limitation of controlling the project cost. But this is not so, they are capable of doing even beyond that. As soon as the various costs of a project is recognized the project managers responsibility and effectiveness is increased. Planning the expenses and the cost of the project and execution of the kindred by the project manager influences a companys profit. He has to take timely action of the range of cash flow, expenses, and reporting of revenue and expenses. Thus the project manager has to be well versed and have a total knowledge in the cost accounting practices which shape the firms project cost reporting (Project Management Journal, June 1986, p375).Scrutiny of the distinctive project profit & loss statement (Table 1) depicts how a project when sold for pro fit is subjugated to costs apart from the projects cost (cost of 4goods sold). The project manager