Project Cost Control Checklist

Pull the executed SOW or engagement letter and reconcile each deliverable to the priced line items in the fee estimate. Scope items priced on assumption (e.g., 'up to 40 hours of stakeholder interviews') need a measurement plan before kickoff — otherwise scope creep eats realization mid-project.

Set up the project in QuickBooks Online (using Projects + Classes), Sage Intacct (Project module with task dimensions), or NetSuite (Project task hierarchy). Map each WBS element to a cost code so labor, materials, subcontracts, ODCs, and overhead post to the right bucket without manual reclass at month-end.

Pull realized rates and hours from the three most comparable closed projects. If your blended rate is more than 10% below the comparables, the budget is likely under-priced — flag with the partner before kickoff rather than discovering it in month two.

Sync the project code from the GL into Bill.com (or Ramp / Stampli) and the timesheet system (Karbon, BigTime, Harvest). Without the tag wired through, vendor bills and time entries land in suspense and require reclass during close.

Run the weekly time export and tie hours to posted labor cost in the project P&L. Catch missing time, miscoded hours, and mid-week role changes within seven days — chasing them at month-end means rework on already-reviewed reports.

Match each vendor bill to its PO line in Bill.com or the ERP. Bills without a PO get held in a review queue, not auto-posted — uncoded subcontractor invoices are the most common source of project cost surprises.

Calculate percent-complete using cost-to-cost or labor-hours method per ASC 606 input-method guidance. Post the WIP adjustment and the corresponding revenue / deferred-revenue / over-billing entry. Document the percent-complete calculation in a workpaper attached to the JE.

Capture requestor, date, originating scope reference, and a one-paragraph description before any cost work begins. A change discussed verbally and not logged is the change that gets argued about at final billing.

Estimate incremental hours by role, subcontractor cost, and any indirect impact (PM oversight, QA review). Compare the total to the PM's signing authority — most firms cap PM authority at 5% of contract value or a fixed dollar threshold.

Route the priced change order through DocuSign with the impact memo and revised cost-to-complete attached. Do not begin work on the changed scope until the signed approval is back — unbilled out-of-scope hours are the single largest realization leak in fixed-fee work.

Add the approved amount to the baseline in the ERP, version the working budget, and circulate the revised cost-to-complete to the PM, controller, and partner. Keep prior baselines locked so original-vs-current variance reporting stays clean.

Compute PV, EV, AC, CPI, and SPI per WBS element. CPI under 0.95 or SPI under 0.90 should trigger a written explanation in the report — partners reading the package should not have to chase variances.

Issue the report through the client portal (Karbon, TaxDome, Liscio) with a short commentary covering top variances, A/R aging on the engagement, and forecast cost-to-complete. Flag the budget-health rating so the sponsor reads the right page first.

Walk PM, partner, and project sponsor through CPI/SPI, top three variance drivers, and forecast at completion (EAC). Capture decisions in the meeting minutes and route any new action items into the change log or risk register the same day.

When CPI falls below 0.85 the partner expects a written plan — re-baselined cost-to-complete, named cost-cutting actions, revised staffing, and a target recovery month. A red status without a recovery plan is the signal that goes to the engagement partner and the firm's realization committee.

Capture each risk with probability, impact in dollars, owner, and trigger. Common SMB-engagement risks: client delay on PBC list, scope creep on assumptions, key-person turnover on the engagement team, FX exposure on cross-border subcontractors.

Contingency covers known-unknowns inside the baseline (typically 5–10% of direct cost). Management reserve covers unknown-unknowns and sits outside the baseline (partner-controlled). Document the basis for each — auditors will ask how the number was derived.

Close out risks that have passed, raise new ones surfaced this month, and reduce contingency for the dollars consumed. Flat reserve balances across multiple months are a signal the register is not actually being maintained.

Match invoice to PO and to receiving / time-confirmation before approving for payment in Bill.com. Subcontractor billing rates that drift from contracted rates are easy to miss when the AP clerk approves on dollar threshold rather than rate detail.

Run a commitments-vs-budget report covering open POs, signed change orders, and forecasted draws. A subcontract that is 80% billed at 50% complete is the signal — escalate before the cost-to-complete blows the line item.

Every new subcontractor needs a current W-9 on file before the first payment, not at year-end. Missing W-9s are the leading cause of January 1099-NEC scrambles and IRS B-notice penalties.

Liquidate remaining commitments on completed POs, release retainage per contract terms, and collect final lien waivers from subcontractors before the final client invoice goes out. Open POs left dangling distort the next project's commitment report.