How can you align project accounting processes with different project teams in a decentralized organization?

1 Establish a common framework

Aligning project accounting processes requires establishing a common framework that outlines the objectives, scope, responsibilities, and procedures of project accounting, as well as the criteria for project initiation, classification, budgeting, reporting, and closing. This framework should include a project accounting policy and manual for detailed guidance on applying the policy, including the accounting standards, methods, and tools to be used. Additionally, a project accounting system should be in place to integrate, consolidate, and validate financial data from various sources.

2 Communicate and train

The second step to align project accounting processes is to communicate and train the different project teams on the common framework and ensure that they understand and follow it consistently. To do this, it's important to explain the benefits and expectations of the framework to the project teams, and how it will help them improve their performance, accountability, and visibility. Additionally, provide them with necessary resources such as templates, checklists, manuals, and FAQs to implement the framework effectively. Furthermore, monitor and evaluate the project teams' compliance with the framework and provide feedback and coaching to address any gaps or issues.

3 Collaborate and coordinate

The third step to align project accounting processes is to collaborate and coordinate with the different project teams and stakeholders to ensure that the project financial information is accurate, complete, and timely. This step should involve defining and agreeing on the project scope, objectives, deliverables, milestones, and budget, and documenting them in a project charter or contract. Additionally, it is important to track and report the project progress, costs, revenues, and profitability in a common format and frequency (e.g., monthly, quarterly or annually). Finally, any discrepancies or conflicts that may arise between the project teams and stakeholders regarding the project financial information should be resolved or escalated to the appropriate level of authority if necessary.

4 Review and improve

The fourth step to align project accounting processes is to review and improve the common framework and the project accounting practices based on the feedback and lessons learned from the project teams and stakeholders. This step should involve regularly assessing the effectiveness, efficiency, and relevance of the framework and practices to the organization's goals and strategies, as well as the changing needs and expectations of stakeholders. Additionally, any changes or enhancements that may be required to optimize the project accounting processes should be implemented, such as updating policies, manuals, systems, or training. Celebrating and recognizing the achievements of stakeholders in aligning the processes is also important for sharing best practices across the organization. Aligning project accounting processes can be complex, but it also brings many benefits such as improved project performance, accountability, visibility, reduced risks, costs, and errors. By following these four steps you can create a common framework, communicate and train, collaborate and coordinate, review and improve your project accounting processes to achieve a high level of consistency, accuracy and transparency in your project accounting practices.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?