Introduction

This advanced budgeting and forecasting training course will help demystify the world of budgeting. It will also provide participants with the techniques and confidence to manage and control their budget effectively.

Our budgeting courses explain financial terms and budgeting tools in a way that a non-financial manager will understand and relate to, in their own line of work. The trainer will also use “real life” examples and case studies and encourage participants to work in small groups, whilst enjoying the subject!

Objectives

By the end of the program, participants will be able to:

– Build budget templates and models for their departments or organizations.
– Apply several forecasting techniques to better manage uncertainties in budgeting.
– Assess capital budgeting decisions using several methods and recommend proper action.
– Utilize Microsoft Excel functions and tools in the budgeting process.
– Evaluate the budgeting process in their organization and recommend improvements.

Course Outline

Day 1

Budgeting and Planning

– The Budget and the Functions of Management.
– Budget as a Planning Tool.
– Budgets and the Key Financial Statements.
– Top-Down versus Bottom-Up Process.

Day 2

Budget Cycle, Process and Approaches

– The Budget Cycle
– The Characteristics of Successful Budgeting.
– Making the Budget a Value-Adding Activity.
– Top Ten Problems with Budgeting.
– Choosing the Proper Budgeting Approach:
– Incremental Budgeting.
– Zero-Based Budgeting.
– Flexible Budgeting.
– Kaizen Budgeting.
– Activity-Based Budgeting.
– Rolling (Continuous) Budgets and Forecasts.
– The Master Budget and its Components.
– Operating and Capital Budgets.
– Best Practices in Budgeting.
– Creating a User-Friendly Template.

Day 3

Forecasting Techniques

– Forecasting Models.
– Qualitative and Quantitative Methods.
– Steps in Developing Forecast Models.
– Time Series and Trend Analysis.
– Data Conditioning Techniques.
– Exponential Smoothing and Moving Averages.
– Simple and Multiple Regression Analysis.

Day 4

Advanced Capital Budgeting Evaluation Techniques

– Business Risk and Cost of Capital.
– Classifying Investment Projects.
– Cash Flow Estimation.
– Analysing Investment and Operating Cash Flows.
– Time Value of Money Concept.
– The Required Rate of Return.
– Net Present Value (NPV).
– Internal Rate of Return (IRR).
– Multiple Internal Rates of Return.
– Modified Internal Rate of Return (MIRR).
– Profitability Index (PI).
– Pay-Back Period and Discounted Pay-Back Period.
– Capital Rationing.
– Comparing and Evaluating Techniques.
– Sensitivity and Risk Analysis.

Day 5

Breakeven Analysis and Optimization Techniques

– Cost-Volume-Profit (CVP) Analysis.
– Using CVP to Reach a Target Income.
– Single Product and Multiple Products Breakeven Analysis.
– Working with Budget Constraints.
– Building Optimization Models.