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