Budgets are an essential financial tool, which aid, planning, decision making, resource allocation, coordination, and control. Without the necessary skills Budgets can be badly prepared and/or implemented leading to poor decisions, mid-use of vital resources, poor coordination, and a lack of control or even too much control resulting in missed opportunities.
Develop the skills to Plan Budgets within a sound Strategic Plan
Become aware of the problems/limitations of budgets and the conditions required for their success
Integrate the budgeting process with the development of the company’s long-term strategic vision
Identify key performance indicators for effective and focused decision making
Perform “What If” and Sensitivity Analysis to evaluate the implications of changes in major factors of production and consumption
Recommend various courses of action to manage the implications of “What If” and Sensitivity Analysis.
Implement advanced planning and control techniques
Develop the skills to effectively Manage & Control the budgeting process
Financial Managers
Financial Planning and Control Staff
Executives with Financial Responsibilities
Executives who are responsible for the cost and strategic analysis
Project Managers
Employees who want to gain new knowledge to improve their career
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:
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
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
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
Break-Even Analysis, Cost Behaviour, and Sensitivity Analysis
Identifying Fixed, Variable, and Semi-variable costs
Identification of the level of sales/profit 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 on the base model.
Building the financial simulation model using probabilistic (Monte Carlo) simulation
Building the financial simulation model using deterministic simulation
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
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