Course description
Budgeting is the cornerstone of strategic financial management in any organisation. It performs a dual role – acting both as a planning and control tool. There are few other activities for which an entire organisation gets involved in development and implementation processes. The scope of budgeting caters to all levels of decision making – from the operating decisions at the grass-root level right up to strategic decisions at the top management level. An error in the budgeting exercise may end up with the organisation losing sight of its strategic and operating objectives.
In order to remain relevant, various budgeting approaches have evolved over time. Each one came with its own strengths and share of weaknesses. The challenge lies in identifying the relevant approaches. The impact of budgets is traditionally reflected in financial statements. In order to keep up with varied approaches, new impact metrics have also evolved. Here too, every organisation needs to make a choice on the metrics to be used.
Upcoming start dates
Upcoming start dates
Suitability - Who should attend?
This Advanced Budgeting Training Course is Ideal for:
- Managing Directors
- Financial Controllers
- Business Development Managers
- Business Planning Managers
- Finance Managers (in various functions)
- Business Unit/Operational Managers
- Management Accountants
- Business Analysts
- Financial Analysts
- Capital Planning Proffessionals
- Treasury Personnel
Outcome / Qualification etc.
By the end of the Advanced Budgeting Training Program, participants will be able to:
- Build budget templates and models for their departments or organizations.
- Develop and implement a successful budgetary control system
- Understand the differences between traditional and modern approaches to budgeting so that you can develop an appropriate approach that would suit your environment
- Get acquainted with techniques and tools like forecasting, that are necessary to develop a realistic budget
- Conduct variance analysis explaining the differences between projection and achievement
- Design a comprehensive budget using the approach of your choice along with tools that you will be introduced to at the course
- 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.
Training Course Content
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, ProcessandApproaches
- 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.
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London Premier Centre
London Premier Centre is a UK leading training provider based in London and specialises in international short courses. Our inspiring, comprehensive portfolio of more than 400 professional development courses and seminars covers a wide range of professions from Administration, Leadership,...