8. Mistakes to avoid

During the project period (before T0), when the annual budget is drawn up, and even more so in times of crisis, there is a risk that certain budgets, particularly those linked to projects, will be reduced. Management control and senior management must be reminded that commitments, particularly those concerning expenditure, made at the time of project launch, cover a different period from that of the budget year. If the company were to decide to reduce or cancel the budget in year N _i , all previous expenditure on this project would result in :

• at best, a delay to the end of the project and the breakeven point, and a reduction in the profit generated;

• in the worst case, a financial loss for expenses already incurred.