How do you update and improve your cost reconciliation tools and processes over time?

2 Evaluate your cost reconciliation methods

The next step is to evaluate the methods you use to perform cost reconciliation. There are different methods, such as top-down, bottom-up, earned value, or variance analysis, that have different advantages and disadvantages. You should choose the method that best suits your project's characteristics, objectives, and constraints. You should also consider the tools and software you use to support your cost reconciliation method, such as spreadsheets, databases, or specialized applications. You may need to update or upgrade your tools and software to ensure they are compatible, secure, and efficient.

4 Communicate your cost reconciliation findings

The fourth step is to communicate your cost reconciliation findings to your stakeholders. You should prepare clear, concise, and relevant reports that highlight the key information, such as the actual versus budgeted costs, the cost variances and their causes, the cost performance indicators, and the recommendations or actions. You should also tailor your reports to the different audiences, such as the project team, the sponsor, the client, or the senior management. You should also use appropriate formats, such as tables, charts, graphs, or dashboards, to present your data visually and effectively.

5 Implement your cost reconciliation actions

The fifth step is to implement the actions that result from your cost reconciliation. You should prioritize the actions that have the most impact on your project's success, such as resolving issues, mitigating risks, seizing opportunities, or adjusting plans. You should also assign responsibilities, resources, and deadlines for each action, and monitor and track their progress and outcomes. You should also document and record the actions and their results, and update your cost baseline and budget accordingly.

6 Learn from your cost reconciliation experience

The final step is to learn from your cost reconciliation experience. You should review and reflect on what worked well and what did not work well in your cost reconciliation process. You should also solicit and collect feedback from your stakeholders on your cost reconciliation performance, quality, and value. You should also identify and capture the lessons learned and best practices from your cost reconciliation process, and share them with your project team and organization. You should also apply the lessons learned and best practices to your future projects and improve your cost reconciliation skills and competencies.

7 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?