Overview
In Handoff, budget values are automatically calculated from approved estimates and change orders. There is no separate budget field to edit, and all budget updates must originate from your estimates.
This article explains how project budgets are calculated, how to increase or adjust a budget using change orders, what happens when the budget changes, and important limitations to be aware of.
These features are available only on the Pro plan, if you are not seeing these features available in your account, please reach out to us at [email protected] to assist.
How the Budget Is Calculated
Every dollar shown in the Total budget KPI card comes directly from approved estimates and approved change orders.
Handoff calculates the budget by adding together the total value of all approved line items, including:
Quantity
Rate
Markup
Draft estimates and unapproved proposals are not included in the budget.
As a result, the budget always reflects the scope and pricing your client has formally approved.
Important
The Budget tab is read-only.
You cannot:
Edit a budget amount directly
Override a line item budget
Enter a new project budget manually
If a budget amount needs to change, the update must be made through an estimate or change order.
Step 1: Increase or Adjust the Budget Using a Change Order
If project scope changes and additional budget is required, create a change order.
Open the project's Estimates tab.
Create a new change order for the additional scope.
Send the proposal to your client for approval.
Wait for the client to accept the proposal.
Return to the Budget tab.
Once the proposal is accepted:
The new change order appears as a separate group in the budget table.
The group is labeled CO-001, CO-002, and so on.
The Total budget KPI updates automatically.
The Remaining budget recalculates immediately.
No action is required in the Budget tab. The update occurs automatically as soon as the proposal reaches an accepted status.
Step 2: Verify the Updated Budget
After the change order is approved:
Open the Budget tab.
Locate the newly added change order group.
Review the updated KPI cards.
You should see:
A higher Total budget
An updated Remaining budget
A recalculated financial status badge
New line items associated with the approved change order
The new line items are tracked independently from the original estimate.
Remove Scope From the Budget
If a line item should no longer be included in the budget, it must be modified before the proposal is approved.
Open the estimate or change order.
Remove the line item or adjust its value.
Send the updated proposal for approval.
Important
Once a proposal has been accepted:
Its line items become part of the project budget.
You cannot remove those budget values from the Budget tab.
You cannot un-approve a proposal from the Budget tab.
Any future adjustments must be handled through additional estimate revisions or change orders.
What Happens When the Budget Changes
When a new change order is approved, Handoff automatically updates project calculations.
Total Budget Increases
The value of the approved change order is added to the existing project budget.
Total Spent Remains Unchanged
The Total spent value only reflects confirmed expenses.
Approving a change order does not affect actual costs.
Remaining Budget Increases
The Remaining budget increases by the value of the approved change order.
Financial Status Recalculates
The project status badge automatically updates based on the new relationship between:
Total spent
Total budget
Possible statuses include:
On track
At risk
Over budget
Existing Expenses Stay Where They Are
Expenses already linked to line items remain attached to their original estimate groups.
Expenses are not automatically reassigned or redistributed when a new change order is added.
New Line Items Start With No Actual Costs
Newly added change order line items begin with:
Actual cost: $0.00
Positive variance equal to their budget amount
As expenses are linked to those items, the variance updates automatically.
Additional Notes
The Budget tab is always read-only.
There is no Edit budget button.
Budget values cannot be modified directly from the budget table.
All budget changes originate from:
Estimates
Change orders
Draft estimates do not affect the budget.
A change order must be accepted by the client before it appears in the Budget tab.
Approved change orders appear as separate groups:
EST-001
CO-001
CO-002
CO-003
Change orders are not merged into the original estimate.
Each change order maintains its own sections, line items, and variance calculations.
Deleting an Other expenses group permanently deletes all expenses linked to that group.
Use caution before removing an Other expenses bucket used for tracking out-of-estimate costs.
The Budget tab does not support exporting or downloading budget data.
To export estimate details, use the export functionality available in the Estimates tab.
Troubleshooting
My Budget Number Is Incorrect
Why it happens
Budget values are generated from approved estimates and change orders.
How to fix it
Review the approved estimate or change order that contributed the value. Budget numbers cannot be edited directly from the Budget tab.
My Change Order Is Not Appearing in the Budget
Why it happens
The change order is still in draft status or has not been accepted by the client.
How to fix it
Send the proposal and wait for client approval. The change order will appear automatically once it reaches an accepted status.
I Can't Edit a Budget Amount
Why it happens
Budget values are read-only and cannot be modified directly.
How to fix it
Update the source estimate or create a change order to adjust the budget. All budget changes must originate from approved estimate data.
Existing Expenses Did Not Move to the New Change Order
Why it happens
Expenses remain attached to the line items they were originally linked to.
How to fix it
Edit the expense and manually reassign it to a different line item if needed.