Why Projects Always Ran Over Budget
An IT services firm managed multiple custom software projects. Each project tracked time and expenses in separate spreadsheets, so managers only learned about overruns after the project ended. 40% of projects exceeded budget, and profit margins eroded by an average of 10%.
How ERPNext Reined in Project Control
ERPNext’s project management module ties tasks, timesheets, expenses, and billing together. Managers set budgets per project and receive alerts when actuals exceed 80% of the plan. The system can generate client invoices directly from approved timesheets and expense entries.
- Original problem: Actual project costs were unknown until month‑end, causing surprise overruns.
- ERPNext solution: Real‑time project cost dashboard with budget variance alerts.
- Improved result: On‑budget delivery increased to 85%; average project margin improved by 8%. Invoicing became immediate, reducing cash flow gaps.
Project managers now see live cost data on their smartphones and can reallocate resources before problems escalate. ERPNext’s milestone tracking also helps keep clients informed and satisfied.