Which steps are necessary before creating a project estimate that includes both estimated revenue and costs?

Mapping each product and service item to income and expense accounts is crucial before creating a project estimate that includes both estimated revenue and costs. This step ensures that any sales or expenses associated with the project are accurately recorded against the appropriate accounts. By making these mappings, you create a direct link between your project's financial data—such as anticipated income from product sales or expenses from services—and your financial reporting, which allows for precise tracking and analysis of profitability.

Without this mapping, it would be challenging to assess the financial health of the project post-implementation, as the revenues generated and expenses incurred would not be aligned with the correct accounts. This could lead to misrepresentation of financial statements and hinder effective decision-making. Therefore, this step is essential for maintaining accurate financial records and facilitating efficient management of project budgets.