Intorduction

This highly interactive course offers a theoretical background and also the practical tools and techniques necessary for the development of budgeting systems and their related functions. It will also provide opportunity for delegates to focus on developing and enhancing their knowledge and practical application of all the concepts, processes, and techniques involved in budgeting for optimal performance.

This course will assist individuals at every level in the organisation in their involvement in the budget process. Being ‘user-friendly’, it provides the practical skills for delegates to take back to their jobs, along with insights needed to adapt principles to specific work environments.

This course will feature:

• Strategic planning
• The budgeting planning process
• Forecasting techniques
• What if analysis and report generation
• Capital budgeting

Objectives

• Develop the appropriate techniques for effective budgeting as part of the planning process
• Design various budgeting models for all elements of a budget
• Explain the use of activity based budgeting, compared with other budgeting methods
• Develop and effectively control budgets
• Provide budgeting knowledge that can be shared for the benefit of your company

Content

Day One

Strategic Planning

• Why strategy comes before the budget
• The strategic planning process
• Developing a strategic plan
• Strategic planning tools
• Where are we now, and where do we want to be?
• Linking the budget with the strategy

Day Two

Forecasting

• What is forecasting?
• Strategic role of forecasting
• The forecasting process
• Forecasting demand
• Sales forecasting using various methods in Excel©
• Qualitative and Quantitative forecasting methods

Day Three

Budgeting

• What is a budget
• Budgeting and the Management Process
• Budgeting framework
• How to evaluate budgeting software
• Budget preparation
• Building the master budget

Day Four

Using a budget as a management tool

• Linking strategic planning , forecasting budgeting and reporting
• Budget cost behaviour
• Budget cost, volume, profit (CVP) and break-even analysis
• Sensitivity & What-If Analysis
• Budgetary Control
• Variance Analysis

Day Five

Capital Budgeting (CAPEX)

• Capital budgeting principles
• Raising finance
• Weighted Average Cost of Capital (WACC)
• Methods of Evaluating Capital Investment Projects
• Comparing different projects and their returns
• Capital Rationing