Racraquin, John Lloyd B.

There is no doubt that the world is getting more globalized and its impact on
businesses is not going unnoticed. Regardless of the size of a firm or where it chooses to
operate, one requirement stays constant, proper costing. A company would be in a very
precarious position if it did not pay close attention to cost information. “Why accuracy is
important in estimate?”, “What is the importance of estimation?”It is critical for a firm to
meticulously manage costs so that profit can be precisely measured against them in each
month this tells a firm how well they are performing. Furthermore, precise cost data enables a
company to create well-informed foresight for making better future decisions.

Project managers who are unable to keep costs under control will quickly find
themselves battling in a field defined by the art of managing resource restrictions. After all,
no one wants to work with someone who is always overspending. Cost estimating enables
you to do what you claim you’ll do while staying within the budget limits imposed by
executives and stakeholders. When it comes to setting up a project’s parameters, precise
project cost estimating must take the front seat as one of the defining elements of successful
progress. Using accurate estimation for your business yields the following advantages for
you. You’ll be able to easily create a work breakdown schedule, assign work to personnel,
and stick to estimated timetables if you can precisely forecast what activities and resources
are required to complete the job. With accurate estimating, you can efficiently plan your
workflows once you have a proper budget drafted for every task. Different factors such as
unforeseen events, poorly scoped work, and inflation can cause job costs to rise over time,
posing a risk to finishing the job on time and within budget, as well as meeting profitability
targets. Accurate estimating accounts for both expected and unexpected costs, ensuring that
your profit margins are protected.

With accurate cost estimation, funds and resources can be more efficiently allocated
to individual project operations. As a result, the project timeline is meticulously planned and
assets are expected to arrive on time. And when projects are completed on time and within
budget, you’re more likely to have satisfied customers, repeat business, and referrals. This
increases the reliability of your business in the market and improves your image &
reputation.