Project Accounting is an integral part of Project Management. It focuses on the financial transactions that take place while creating and fulfilling a project. It involves various processes like tracking, reporting, and analysing all the financial data related to a project.

This is especially helpful in large scale projects that span over a longer period of time, like construction, engineering, consulting services or government projects. These kinds of projects require adequate accounting since they face the risk of surpassing their budget. Project accounting can help recognise early signs so that project managers can take corrective measures.

Creating project budgets and tracking expenses against them is a key project control mechanism