The document discusses project accounting and agile project management. It provides definitions of project accounting and describes how it can track financial progress on projects. It also discusses how agile estimation in sprints can be correlated to financial reporting, and some common pitfalls and successes of large-scale agile implementations, using a case study of one organization's transition.

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Agile costs,
but who’s counting?
Dina Gofman & Lourdes Duggineni

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Wikipedia
Project accounting (sometimes referred to as job cost accounting)
is the practice of creating financial reports specifically designed to
track the financial progress of projects, which can then be used by
managers to aid project management.
“ “
THIS IS TERRIBLE!!

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Project Accounting Australia
Project Accounting is:
A specialised form of accounting that corresponds to the ever-
evolving needs of project delivery, which helps adequately track,
report and analyse financial results and implications.“ “
DRY, BUT TO THE POINT.

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Dina Gofman
Co-founder
ProjectAccounting.com.au
Lourdes Duggineni
Co-founder
Project Accounting Australia
Founders
ProjectAccounting.com.au

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Project methodology01
02
03
Why Project Accountants?
Management & financial accounting
skills (& sometimes BA skills)
Non-cyclical nature of projects

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versus

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KEY TAKEAWAYS
01
02
03
04
Better understanding of the critical role of accounting
in project management.
Correlation between Sprint estimation and financial
reporting.
Pitfalls & successes in a large scale agile roll-out.

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Product Owner
02
Project Accounting = Success
Accountant

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Pre-Sprint 0
Your relationship with project accounting:
Scrum Ecosystem
01
02
03
Sprint Planning
Retrospectives
Project
Sponsor
SCRUM
Master
SCRUM
Team
Product
Owner
Prioritisation
Beneficiary
Delivery
PMO
Project
Accountant
Executive
Board

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Profit & Loss Statement:
Add Contents Title
= Profit/Loss
Balance Sheet:
= Owners’ Equity + Profit/Loss
Revenue
Expenses
Assets
General Terms
Project Accounting 101
minus
Liabilities
minus
CAPEX OPEX

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How will you account
for SCRUM?
01 02 03 04 05
Leancanvas
Capitalisation
Depreciation/Amort.
Valuecreated
ROI/NPV
PRE-SPRINT 0
Considetrations before you start your project

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When was the initiative
you are passionate
about denied funding?

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This is what we planned:
ASSETEXPENSE
Idea generation
Analysis
Exploration
Inception
Sprint 0
Backlog of requirements
Delivery
Feature 1 Feature 2 Feature 3
Design
Develop
Test
Implement
ASSET
Design
Develop
Test
Implement
Design
Develop
Test
Implement
ASSETASSET
$10K $10K $10K $10K $10K
CAPEX BUDGET = $40K P&L BUDGET = $10K

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This is what happened:
ASSETEXPENSE
Idea generation
Analysis
Exploration
Inception
Sprint 0
Backlog of requirements
Delivery
Feature 1 (SUCCESS) Feature 2 (FAIL) Feature 3 (SUCCESS)
Design
Develop
Test
Implement
ASSET
Design
Develop
Test
Rework
Design
Develop
Test
Implement
ASSETEXPENSE
$10K $10K $10K $10K$10K
CAPEX SPEND = $30K P&L SPEND = $20K

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Sprint estimation and
financial reporting

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Old School vs New School
01
02
03
04
Budgets vs MVPs
Month-end vs Sprints
Story Points = $$

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Agile (Relative) Estimation
SCRUM Ways of Working
Sprint 1
2 Points
= 4 minutes
= $4
Sprint 2
3 Points
= 5-7 minutes
= $5-7
Average = $6
Total Project Estimate = 5 Points = 10 minutes = $10 worth of labour
+ Cost of fruit & equipment (non-labour cost) of $5
+ Cost of refrigeration (OPEX) of $2
= $17

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Profit & Loss Statement:
Add Contents Title
= Loss of $2
Balance Sheet:
= Owners’ Equity $17 – Loss $2
Revenue
Expenses $2
Assets $15
Budgets vs Relative Estimation
Fruit Salad
minus
Liabilities
minus
CAPEX OPEX

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Time tracking
Project portfolio budget
Steering Group
PMOSystems
PA Methodology Modules
Budgets vs MVPs

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When do
you look at
the
instructions?
A
B
C
04D

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Time tracking
Project portfolio budget
Steering Group
PMOSystems
PA Methodology Modules

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Common
pitfalls &
successes in
large scale
agile roll-outs
Case Study of
Australia’s
largest insurer

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Cost management
Benefits realisation
Portfolio prioritisation
01
02
03
The Key is to Learn
Don’t wait until it’s too late

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Consulting, Training &
Stationary
Loss of visibility of
scope, spend and risk
Concept of cross-
functionality
Time tracking
Levers to STOP, START &
CONTINUE
Governance
Supporting tools
TIME and MONEY
Key Learnings
The Insurer’s Scrum Journey

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Time tracking
Project portfolio budget
Lean Governance
Orchestration
Project AccountingSystems
Successes
Results of the Transformation

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Thank you!
For further info, send a SMS with
YOUR NAME
& EMAIL
to
0411 202 307
ProjectAccounting.com.au

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