Budgeting & Budgetary Control

Budgeting & Budgetary Control

OBJECTIVES

• Have a good understanding of the basics of budgeting and forecasting
• Appreciate the need for developing accurate budgets and forecasts.
• Contributing effectively to Strategic Planning
• Link budgeting and forecasting into the business’ strategy
• Prepare rolling forecasts
• Guide operational management in the effective use of budget and forecast data
• Implement  costs cutting initiatives and improve effectiveness

WHO SHOULD ATTEND?

• Finance Managers
• Planning/Budget Controllers
• Cost Controllers
• Middle Management officers in Planning /Budgeting
• Financial and Product Control
• Finance Business Partners
• Management, Statutory and Regulatory Reporting
• Auditors and Internal Control
• Accountants and Consultants

COURSE OUTLINE

Linking the Tactical Budget to Strategic Objectives

• The Strategic Planning Process and the Budget as a Plan
• Aligning the Budget with the Organization’s Strategy

Principles of Budgeting and Cost Control

• The Critical Functions of Management
• Is Control the Missing Link?
• Role of cost management in the business strategy
• Cost management and motivation
• Embedding cost control in the business
• Role of Finance in cost control

Budgeting and Costing Techniques

• Forecasting Methods
• Break-Even Analysis
• Use of Standards
• Trend Analysis and Cost Estimation

Rolling Forecasts

• Role of forecasts and the link to strategy
• Comparing and contrasting budgets and forecasts
• Identifying key business drivers
• The rolling forecast process
• Forecasting methods

Management use of budget and forecast data

• The different types of reports and their use
• Developing quality commentary
• Structuring the monthly management meeting to best use the new information

Project Budgeting

• Project Planning
• Direct and Indirect Project Costs

Capital Expenditure Budgeting and Analysis

• Time Value of Money
• Investment Appraisal techniques – Pay-Back Period (PBP) ;Net Present Value (NPV) ;Internal Rate of Return (IRR) ;Profitability Index (PI) ;Accounting Rate of Return (ARR)
• Approval for Expenditure (AFE)
• Sensitivity and Risk Analysis

Cost Control and Management Budget Reports

• Budget as a Control Tool
• Approaches to Cost Control
• Understanding the Need for Timeliness and Precision
• Variance Analysis
• Problems in Budgeting