The Essentials of Budgeting & Business Finance

The Essentials of Budgeting & Business Finance

OBJECTIVES

• Understand the importance of linking finance with the business
• Understand the purpose of budgets and their impact on the organisation.
• Appreciate the place of the budget in strategic planning
• Understand the motivational effects of budgets
• Understand how budgets are used both for planning and for control
• Understand how budgets can be used for responsibility accounting
• Develop a true cost awareness
• Thinking beyond the budget as finance get operationalized

WHO SHOULD ATTEND?

• The staff person who will be responsible for the budget system
• Those who want to gain control of the firm’s financial standing and obtain a firm grasp on the numbers side of their job.
• Anyone who wants to understand the basics of budgeting

COURSE OUTLINE 

DAY 1

Strategy & Budgeting: Creating a “Business Finance” Culture

• The complexity of managing contemporary organization
• Strategic Plan, Budgeting, Costing and Management Control
• Management Accounting for organizational control systems
• Responsibility accounting and the process-view
• The Budget and its role for achieving organizational targets
• What is it the situation in your organization

DAY 2

Issues of Budgeting

• The Budget and its role for achieving organizational targets continued.
• The limits of the budget
• The Master budget and it schedules
• The motivational aspects of budgeting
• The linkages between budgeting and costing
• Cost classifications

DAY 3

Costing for Budgeting Purposes

• Cost terms and methodologies
• Inventoriable vs. period costs
• Manufacturing vs non-manufacturing costs
• Variable vs. Fixed costs (CVP analysis)
• Direct vs. indirect cost
• Under-costing and Over-costing problems

DAY 4

Flexible Budgets & Variance Analysis

• The budgets and performance measurement as tools for communications
• What is it the situation in your organization? How to improve it?
• The imperative of value-creation: towards value-based budgeting
• Describe the difference between a static budget and a flexible budget
• Compute flexible-budget variances and sales-volume variances
• Integrate continuous improvement into variance analysis

DAY 5

Balanced Scorecards: Tools To Bring Finance In The Business

• Bringing Finance in the Business by making the strategy visible
• The balanced scorecard and its four perspectives
• Implementing the balanced scorecard
• Setting Objectives and KPIs
• Developing the Strategy Maps
• Develop a Balanced Scorecard for your organization