How to Create a Project Budget: Keep Track of Freelancer Rates

Naturally, basic expense items must be accounted for.
• Pays of participants, contractors, and specialists involved in the project;
• Services, software, equipment, and consumables;
• Payment for services of highly specialized experts (lawyers, medical professionals, engineers, etc.);
• Training expenses (courses, webinars, trainings, master classes, etc.).
Each project has its unique costs. Depending on specifics, the types of expenses also differ. For example, when creating a website, most of the money will be required for the purchase of software and the salary of a programmer, tester, and web designer. At the same time, it is important to know the price of freelance services in advance in order to correctly calculate the budget.

1. Write down the goals and objectives of the project. Then distribute what stages and tasks it will consist of. Make a list of specialists and resources that will be required to complete all tasks. The more detail you think of in the stage, the easier it will be to calculate the number of resources and calculate expenses. You can consult with members of the project team who will definitely be involved.
Carefully examine the compiled lists to figure out how many freelancers you may need. For example, what specialists are available to you, and which ones will you have to hire, or how much does a freelancer cost?

2. Estimate the total cost of the project. This can be done in one of the following ways:
• Set an approximate budget amount and distribute it across all tasks.
• Calculate preliminary expenses for each task and add them up.
• The cost of each task or stage, depending on their type, can be calculated using special methods.
• Use past projects for reference. If you already had similar tasks and a financial plan, you can take the figures from there and rely on them. This method is suitable for routine projects and allows you to calculate an approximate estimate.
• Calculation based on statistical methods. In this case, you can also rely on the figures of previous similar projects, but the expenses are obtained using algorithms for calculating the values of variables.
• Three-point calculation method. First, determine the most optimistic cost, then the most pessimistic, and finally the most realistic. Based on these figures, calculate the average value to go with.
To take into account the salary of project participants in the budget, you need to know the rates of freelancers, which depend on the complexity of the tasks and the time spent. Remote specialists must determine the cost of services based on the technical task and announce it to the employer even before the start of the project.

3. Agree on the financial plan with the team. Project participants should check it and provide feedback on whether all expenses are taken into account and whether the figures are realistic. Based on their feedback, you can adjust the project budget and make it more accurate.

4. Prepare a process for making changes and familiarize the team with it. If the amount for any expense item increases, they must make a request formal request that explains why the increase is unforeseen and how they can manage it.