For the project business, it is essential to identify future risks and their financial impact on the project as quickly as possible. The financial project goals must also be checked reliably and on an accrual basis. For this purpose, finitia developed a tool for monthly project monitoring. The tool evaluates work according to the degree of completion (PoC method). In this way, the development of the project value can be shown correctly at any time and the value added can be recorded on an accrual basis.
The chart illustrates the importance of identifying the effective value added or the correct project value as soon as possible. The later the necessary correction is recognised, the greater not only the need for correction in the financial statement ("value added debt" or too much value added consumed in early periods), but also the smaller the chance of correcting the project value through adequate measures (negotiation with the client, negotiation with sub-planners and subcontractors, restrictive resource planning, etc.).
