From the course: Accounting Foundations: Cost Estimating

Where to go from here

From the course: Accounting Foundations: Cost Estimating

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Where to go from here

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- Wow, we've covered a lot in this course, and I hope you leave appreciating why it's important to identify an estimate costs in your projects, or any business effort for that matter. For most people, the word cost is a bad thing. Well, no kidding. It's a four-letter word. But the reality is that costs will always exist, and you'll never eliminate them altogether. So you need to manage it. You can do it like everyone else does, reducing and cutting costs wherever you can. This is a quick fix and not something I'd recommend. It'll get you into trouble very fast. Or you can roll up your sleeves and be the one who dictates what costs will deliver substantial value. This is my choice, but you know, that's just me. I like to be in control. Cost estimating is your first step to becoming the cost master. But unfortunately, cost estimating is easily overlooked because it sounds really, really complicated. Naturally, estimating costs usually applies within a business context, such as a major investment or when planning a project. But if you want to be just a little selfish, you can also apply it to major purchases in your life. For decision-makers, cost estimating is often seen as a tedious inexpensive process few will use. Now, they're not entirely wrong. It's an intensive process to do properly, but there are many reasons why you'd want to do it. The main reason is to make informed decisions about investment viability, structure, and resource requirements, rather than simply buying items at the lowest price. This is a big mistake, especially for major decisions and projects. A cost estimate is a fantastic tool for cost control. Once a project is underway, or a purchase is made, your estimate acts as a control mechanism. You can monitor and compare the estimate with actual results during the project or product life cycle. This control allows you to make adjustments avoiding any unforeseen surprises. Also, nothing remains constant over the life cycle of a program or project. In today's world, things change really fast. So expect your cost to change as well. Developing a detailed estimate gets you one step ahead and allows you to flex and adapt for anything that could come your way. So what's your next step? Well, this course is a fantastic first step, but if you're serious about cost estimating, there are many more steps in the journey. There's a Cost Estimating Association you can join. There are plenty of online resources, books, all sorts of things. I've put a few suggestions together in a list in the exercise files. You can download it right here below the video player. I'm confident this course laid a strong foundation, but hopefully, I've gotten into your head. So the next time you get involved in a project, you'll apply what you learned here.

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