How to Create a Budget Forecast in Jira

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Did you ever attempt to estimate the budget for a project in Jira and feel that it’s as reliable as predicting the weather with a coin toss? Many Jira users experience the same thing.

                     

This often leaves project managers fighting with complex spreadsheets and manual calculations, leading to inefficiencies and a lack of real-time visibility.

You can use Jira for task tracking, but forecasting the budget, time, and resources needed for your project is almost impossible. You could try to make it work, but it’s not really intended for that.

In this article, we’ll show you how it is possible to forecast your budgets without spreadsheets or complicated processes.

What is a Budget Forecast in Jira?

A budget forecast helps you plan and manage your project’s finances. You can use it to predict how many resources and funds are necessary to complete the project. By looking at critical factors such as team availability, task duration, and deadlines, a comprehensive forecast allows you to anticipate future costs and make informed decisions.

Generally, a robust budget contains:

• Estimated Time - The projected duration your team needs to complete a task.
• Resource Forecast - The required allocation of team members and their hourly rate.
• Cost Forecast - The total cost calculated based on the projected time and hourly rate.

Native features of Jira are excellent for tracking work progress, but can't do the following:

• Plan all the expected costs for the project.
• Calculate how much work your team can do with a certain budget.
• Keep track of how much you have spent vs. what you were supposed to spend as work progresses.

Therefore, an app such as Time & Cost Tracker for Jira is designed to add budgeting and forecasting functions to your Jira.

Time & Cost Tracker for Jira

Time & Cost Tracker for Jira is a powerful app designed to empower project managers to monitor their team’s time and finances.

You won’t need to guess or use several spreadsheets, as all the information is gathered in one spot. You can set your team rates, monitor your team’s time, and get detailed reports about your project’s expenses.

Forecasts is one of the recent but yet powerful solutions for budget management. It lets you predict how your project budget will turn out before you start working on it. Simply add your time estimate and rates to calculate the costs. Currently, it operates using the Original Estimate and Remaining Estimate, but story points are set to be added soon.

How to Create a Forecast in Jira?

After the Time & Cost Tracker for Jira app installation you can start working with Forecasts.

To create a budget forecast, you need to do the following:

1. Go to the Forecasts section of the app and click Create forecast button.
2. Name the forecast, choose a scope, set the default forecasted rate, and select the estimated field (Original Estimate or Remaining Estimate).
3. Click Create button.

You will get your forecast.

🧮 Estimated Time × Hourly Rate = Forecast Cost

For example:

Right in it, you can edit your team's hourly rates. For example, Emily Johnson's rate is $10 per hour, and James Smith's is $16 per hour. You will receive the total forecasted costs necessary for budgeting your team or department.

You can edit forecasts easily if needed.

Benefits of Using Forecasts in Jira

Using the Forecasts can simplify your work for several reasons:

• Proactive planning: Figure out the time and budget needed before you begin the project.
• Stick to your budget: Keep an eye on your budget so you’ll know if you go over it.
• Easy-to-read reporting:Create clear, intuitive budget reports for your manager.
• Stakeholder communication: Keep everyone up-to-date by sharing your forecasts with clients or stakeholders.

Summing Up

It becomes much simpler to plan a project in Jira if you know the budget and the time needed. With the Time & Cost Tracker for Jira, you can easily handle this. Forecasts allow you to review project budgets in advance and notice changes as your team completes the work. It’s easy to set up and helps you avoid overspending. 🚀📊 Install the app and get started with forecasting right away!