SETTING AND CONTROLLING BUDGETS

Introduction:

This training deal thoroughly with the questions that you have always wanted to know about planning, budget setting and budget management, in plain language that is easy to understand. It explains in depth how to apply the methods and strategies of effective budgeting and budgetary management to ensure that organizational priorities are achieved within the overall planning system.

This clarifies the terminology and methods, and the relations between calculating policy, budgeting, costing and efficiency. During this stimulating course, the trainer’s own business career experiences and many other real-world business scenarios are shared to illustrate and strengthen the practical application of the tools and techniques and best practices.

Course Objectives:

At the end of this training, participants will be able to:

• Identify the ties between strategic planning, budget making, and performance measurement
• Utilize alternative approaches to costing for planning, budgeting and budgetary control
• Establish an operating budget, cash, capital budget and develop a master budget
• Develop budget control systems, and use flexed budgets to analyze variances
• Integrate continuous performance enhancement into the budget cycle, and use the balanced scorecard to align budgets and KPIs with strategy

Course Outline:

Day 1: Strategic and Financial Planning

• Financial Accounting and Management Accounting
• The Links between Strategic Planning, Budget Setting, and Performance Measurement
• Planning and Strategic Management
• Mission, Vision, and Objectives
• The Planning Process
• External Environment Analysis, Internal Resources Analysis, SWOT and PESTEL
• Shareholder Wealth Maximization, value Creation and Financial Strategy
• Financial Planning and Modelling, and Long-term and Short-term Financing

Day 2: Cost Analysis for Budgeting

• What is Costing?
• Cost Behavior – fixed costs and variable costs
• Contribution, Cost / Volume / Profit (CVP) Analysis and break-even models
• Traceable Costs and Non-traceable Cost Allocation
• Product Costs and Period Costs – product costing for inventory valuation and profit ascertainment
• Direct costs, Indirect costs, Absorption Costing and Marginal costing
• Product Costing for Budget Setting, Budgetary Control and Performance Measurement
• Refinement of the Costing System and Activity-Based Costing (ABC)

Day 3: The Framework for Budgeting

• What is a Budget – and Why Budget?
• The Budgeting Framework and the various Types of Budgets: top down; bottom up; incremental; zero-based; activity-based
• The Budget Process
• Qualitative and Quantitative Techniques of Forecasting Sales and Costs, and Sales Pricing
• Budgeting for Labor Costs and Depreciation
• The Departmental Budget
• Preparation of the Master Budget and the Cash Forecast / Budget
• The Human Side and the Behavioral Aspects of Budgeting

Day 4: Activity-Based Budgeting (ABB), Capital Budgeting, Budgetary Control and Variance Analysis

• How the Budget is controlled in your Organization
• Activity-Based Budgeting (ABB)
• Budgeting for Capital Projects
• Discounted Cash Flow (DCF) investment appraisal methods of Net Present Value (NPV) and Internal Rate of Return
• Capital Rationing and the Profitability Index (PI)
• Budgetary Control Systems and Responsibility Accounting
• Standard Costing for Budgeting and Budgetary Control
• Fixed Budgets, Flexed Budgets, Variance Analysis and the Reasons for Variances

Day 5: Beyond Budgeting – Broadening Performance Measurement Systems

• Integrating Continuous Improvement into the Budget Process
• Advantages and Disadvantages of Budgeting
• How to Improve the Budget Process in Your Organization
• The Conflict between Performance Improvement and the Costing System
• Lean Thinking and Performance Improvement
• What next – beyond the Budget?
• The Balanced Scorecard – linking strategy with budgeting and with performance measurement
• Developing and Adapting the Balanced Scorecard: Financial Perspective; Customer Perspective; Internal Business Process Perspective; Learning and Growth Perspective

Who Should Attend?

• Financial Managers
• Project Managers
• Senior Managers
• Human Resource Managers
• All other financial and non-financial workers requiring or wanting to understand planning, budgeting and budget control

Delivery Method: Lectures, discussions, syndicate work, case studies, role – play and group exercises. Audio – Visual aids will be used to reinforce these training and learning methods.

Venue: U.S.A

Fee: $5,000.00

Duration: 1 Week

Date: Sept 18^th – 22nd 2023