In this article, we will learn how to create Budget Burndown Chart in Excel. Burndown chart is an effective tool for tracking the progress of a project. A burndown chart is mainly a line chart created in Microsoft Excel representing the remaining task versus the amount of time left to complete. So, without delay, let’s explain the steps of creating a budget burndown chart in Excel.
Download Practice Workbook
To practice by yourself, download the following workbook.
What Is Budget Burndown Chart in Excel?
The Budget Burndown chart is mainly used by project managers. It is used for tracking the progress of the project. We can analyze if the work is progressing according to the deadline. In X–axis, there is information about time tracking. And Y–axis represents the remaining task. So, in Budget Burndown Chart, there are 2 lines. One is representing the estimated remaining tasks according to the budget or plan and another line is representing the actual progress. For this reason, this chart is used for keeping track of and maintaining the schedule for the projects.
Step-by-Step Procedures to Create Budget Burndown Chart in Excel
To create a Budget Burndown Chart in Excel, we will use a dataset of a project. The task is already 50% completed. The remaining 50% task needs to be completed between 7th November 2022 to 15th November 2022. There is an estimation of working progress day by day. And there will be no work over the weekend. So, now we will insert the actual work progress and will create Budget Burndown Chart in Excel. To learn the procedure, let’s go through the steps.
STEP 1: Make Dataset Ready
- Firstly, we have selected the following dataset.
- You can see the Total Work, Estimated Progress and Dates inside the dataset.
- We will find the Actual Progress and insert it into the dataset.
STEP 2: Enter Actual Task Progress in Dataset
- Secondly, insert the actual work progress.
- Here, we will insert the value of the remaining task at the end of each day in the E column.
STEP 3: Generate Budget Burndown Chart in Excel
- In the following step, we have to select the Date, Estimated and Actual Remaining Task columns.
- For selecting non-adjacent columns, select any column.
- Then, hold the Ctrl key on the keyboard and select the other non-adjacent cell you want to select.
- After selection, release the Ctrl key.
- Instantly after selection, we need to insert a line chart.
- Therefore, go to the Insert tab and select the Insert Line icon from the Charts group.
- Now, the Line Chart wizard will open up and you can select any type of line chart from there.
- We have selected the following 2-D line for our burndown chart.
- Now, we can observe the Budget Burndown chart in our Excel sheet.
- In the chart, the Orange color indicates the pending percentage of tasks day-by-day.
- And, the Blue color represents the remaining task day-by-day according to estimation.
- Finally, we have been able to create a budget burndown chart in Excel.
- We have modified the name of the chart and renamed it Budget Burndown Chart.
Drawbacks of Budget Burndown Chart in Excel
Although the Budget Burndown Chart is a very useful tool for tracking progress, there are some limitations to it.
- Creating Budget Burndown is time-consuming work. Because we need to create it on the manual system. The goal of burndown charts is to show you the progress of your projects in less than a second so you can immediately understand what is going on in your business and how productive your team has been. Making a burndown chart in Excel defeats the objective of the chart because it is sluggish, laborious, and boring.
- Here, for creating Budget Burndown Chart, you are manually inputting data relating to the quantity of actual work completed. As you are doing the work manually, the system is not error-free.
- Mobile compatibility is a key quality to look for in any app. Accessing or creating the Excel burndown chart on your phone is necessary which is not present at the moment.
In this article, we have demonstrated step-by-step procedures to create a budget burndown chart in Excel. Furthermore, there is a practice workbook at the beginning of the article. So, go ahead and give it a try. To read similar articles, check out the ExcelDemy website. Last but not least, please use the comment section below to post any questions or make any suggestions you might have.