Introduction

This highly intensive course offers a theoretical background and also the practical methods and techniques essential for the development of budgeting systems and their related functions.

It will also give the opportunity for delegates to focus on developing and enhancing their knowledge and practical application of all the concepts, processes, and techniques evolved around budgeting for best performance.

Objectives

– Build up the appropriate methods for effective budgeting as part of the planning process.
– create multiple budgeting models for all elements of a budget.
– Understand 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.

Course Outline

Day 1

Strategic Planning

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

Day 2

Forecasting

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

Day 3

Budgeting

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

Day 4

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 5

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.