Course details

Overview ?

The Course

Budgets are an essential financial tool, which aid, planning, decision making, resource allocation, co-ordination and control.

Without the necessary skills Budgets can be badly prepared and/or implemented leading to poor decisions, mid-use of vital resources, poor co-ordination and a lack of control or even too much control resulting in missed opportunities.

This programme provides participants with the skills necessary for the effective preparation and implementation of budgets including the:

Sales Budgets
Production Budgets
Cash Budgets
Capital Budgets and
Master Budget

The Structure

This comprehensive programme consists of two modules which can be booked as a 5 Day Training event, or as individual, 3 or 2 Day courses.

Module 1 - Preparing Budgets

Module 2 - Budget Management & Control

The Goals

Participants attending will:

Develop the skills to Plan Budgets within a sound Strategic Plan
Develop the skills to Prepare Budgets using:
- Appropriate Forecasting Techniques including Time Series Models,
- Exponential Smoothing, Regression and Correlation Analysis and
- Costing Methods such as Activity Based Costing
Develop the skills to effectively implement Budgets by:
Becoming aware of the problems/limitations of budgets and the conditions required for their success
Integrating the budgeting process with the development of the company’s long-term strategic vision
Identifying key performance indicators for effective and focused decision making
Performing “What If” and Sensitivity Analysis to evaluate the implications of changes in major factors of production and consumption
Recommending various courses of action to manage the implications of “What If” and Sensitivity Analysis.
Implementing advanced planning and control techniques such as
- Variance Analysis into the budgeting process
- Providing a decision support structure that provides timely and useful information to decision makers
Develop the skills to effectively Manage & Control the budgeting process

The Delegates

Planning, budgeting and forecasting are essential skills that should be acquired (though at varying levels) by all the managers in a company.

In particular the following will find it very helpful:

Financial managers, finance controllers treasurers and inventory managers
Senior managers with a direct responsibility for financial management and control
Accountants, sale and purchase managers and managers responsible for relationship with banks
Any manager, at a medium and senior level, who is a part of the financial decision making team.
New interns and trainees with finance related responsibilities.
Department heads, process owners, administrative personnel associated with budget management, financial and technical professionals, sales and marketing professionals, project managers, and anyone who needs to understand how to develop cost projections for their department, projects.

The Process

The programme is highly interactive. Delegates will be actively engaged in an on-going case study applying different planning, forecasting and analysis techniques in a work situation to ensure development of understanding and the transfer of skills. Participants will also be given a detailed set of handouts and examples.

The Benefits

You will be able to further your professional skills.
You will be able to make more informed and hence better planning, budgeting and forecasting decisions using various models and software.
You will make improved budgeting decisions which will increase your importance to your organization
You will be better placed to liaise effectively with other departments on planning, forecasting & budgeting matters.

The Results

Participants will not only be able to analyze various business problems but will also be able to evaluate various courses of action and make sound recommendations for action using leading software
The participants will become more aware of the importance of effective planning, budgeting and forecasting making the budgeting process more cost effective
New skills for strategic planning will help to make more informed and hence better management decisions.
Exposure to different techniques will help the company to efficiently forecast everything from cash to capital projects.
The knowledge gained can be shared amongst other departments of the company.

The Core Competencies

Integrating the planning process with the budgeting cycle
Forecasting using various models including Time Series Models, Exponential
Smoothing, Regression and Correlation Analysis using Excel and leading software/models
Sales Budgets
Production Budgets
Cash Budgets
Capital Budgets
Budget Management including “What If, Sensitivity Analysis
Budget Control including Variance Analysis to assess the impact on major factors of production and consumption

The Programme Content

Module 1:
Preparing Budgets

Day One

The Essentials of Budgeting

Strategic Planning, Forecasting, Budgeting and Costing – Defined
The inter-relationship of Strategic Planning, Forecasting, Budgets and Costing
The Benefits & Limitations of Budgets and the Essential Features & Conditions Required
An Evaluation of Various Types of Budgets, e.g.
- Fixed
- Variable
- Zero Based
- Activity Based
- Capital Budget
The Essential Features of Activity-Based Budgeting
- Developing the ABB application model
- Budgeting for Processes rather than Departments
- Defining Key Cost Drivers
- Defining Key Activities
- Development of ABB Cost Standards
- Developing the Activity-Based Budget
Preparing The Master Budget using Excel
- Sales Budgets
- Production Budgets
- Cash Budgets
- Capital Budgets
- The Master Budget

Day Two

Forecasting Future Sales, Costs, Exchange Rates, Interest Rates, etc

Determine the Purpose or Objective of Forecasting
Methods of Forecasting using Qualitative and Quantitative/Statistical Analysis
including the Exploratory Data Analysis Tools Available in Excel®
- Their Use & Limitations
- Recognizing the Basic Patterns Inherent in Historical Data
- Time Series Analysis
- Exponential Smoothing
- Correlation and Regression Analysis
Presenting initial forecasts to decision makers
Forecasting future Market/Sector developments using Qualitative Analysis – SWOT Analysis and LEPESTE & Co Analysis
Implementing Forecasts into the Budget
Considering Hedging Strategies where variables such as Exchange Rates and Interest Rates cannot be forecast accurately
- Forwards, FRA’s, Futures, Options and Swaps

Day Three

Preparing and Implementing Budgets Based on Forecasts

Preparing the Sales Budget
Determining the price, credit policy, discount policy and currency
Preparing the Production Budget
Preparing the Cash Budget
Make finance and investment decisions
Preparing Capital Budgets
Use Excel®, to evaluate various Capital Projects using Present
Value, Future Value, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return and Discounted Payback models
An Introduction to “What If” and Sensitivity Analysis to evaluate the implications of changes in major factors of production and make strategic decisions
Implementing Budgets Successfully
The Conditions Required
The Management Skills Required

Module 2:
Budget Management & Control

Day Four

Break Even Analysis, Sensitivity Analysis, and What If Analysis

Break Even Analysis, Cost Behaviour and Sensitivity Analysis
- Identifying Fixed, Variable and Semi-variable costs
- Identification of the level of sales/profit in order to break even
- Identification of critical costs
- Determining resources requirements
- What if Analysis using Excel and leading software
Performing “What If” and Sensitivity Analysis to evaluate the implications of changes in major factors of production and consumption on the Cash Budget and Profit & Loss Account
Identification of key performance indicators for effective and focused decision making
Recommend various courses of action to manage the implications of “What If” and Sensitivity Analysis.
Developing Budget Re-Projection and Best Case / Worst Case Scenario Models
- Planning for contingencies
- Developing various scenarios
- Using the Scenario tool in Excel® to explore the variable sets of assumptions while tracking the impact to the base model.
- Building the financial simulation model using probabilistic (Monte Carlo) simulation
- Building the financial simulation model using deterministic simulation

Day Five

Variance Analysis, Reporting, Control and Decision Making

Accounting Systems, Accountability and Responsibility Systems
Essential Elements of a Costing System
Establishing and Implementing a Costing System
Undertaking Variance Analysis and Presenting a Variance Report to decision makers
Evaluation of the results
Making Strategic Decisions based on the Variance Report/Business Planning

Day 1

Day 2

Day 3

Day 4

Day 5

Training Methodology

Effective Budgeting, Planning & Control

Course details

Have a look too on these courses

Accounts Payable From Accounting to Management (Planning, Organizing and Achieving Best Practices)

Corporate Finance

Finance for Managers

International Financial Reporting Standards

Budgeting, Forecasting and the Planning Process

The Financial Excellence Programme

Main Pages

Quick Access

More Details

Contact Info

Effective Budgeting, Planning & Control

Course details

This programme provides participants with the skills necessary for the effective preparation and implementation of budgets including the:

Participants attending will:

In particular the following will find it very helpful:

Module 1: Preparing Budgets

Day One

The Essentials of Budgeting

Day Two

Forecasting Future Sales, Costs, Exchange Rates, Interest Rates, etc

Day Three

Preparing and Implementing Budgets Based on Forecasts

Module 2: Budget Management & Control

Day Four

Break Even Analysis, Sensitivity Analysis, and What If Analysis

Day Five

Variance Analysis, Reporting, Control and Decision Making

Have a look too on these courses

Accounts Payable From Accounting to Management (Planning, Organizing and Achieving Best Practices)

Corporate Finance

Finance for Managers

International Financial Reporting Standards

Budgeting, Forecasting and the Planning Process

The Financial Excellence Programme

Main Pages

Quick Access

More Details

Contact Info

Module 1:
Preparing Budgets

Module 2:
Budget Management & Control