Advanced Budgeting Training
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Advanced Budgeting Training Course
Introduction:
Budgeting plays a crucial role in strategic financial management within organizations, serving as a vital tool for both planning and control. Unlike many other activities, budgeting involves the entire organization in the development and implementation processes. It encompasses decision-making at all levels, from operational choices at the grassroots level to strategic decisions made by top management. An error in the budgeting process can divert the organization from its strategic and operational objectives.
To remain effective, budgeting approaches have evolved over time, each with its own strengths and weaknesses. The challenge lies in identifying the most relevant approaches for a given context. Traditionally, the impact of budgets is reflected in financial statements. However, as different approaches have emerged, new impact metrics have also been developed. Organizations must choose the appropriate metrics to measure the impact of budgets.
This is where the Advanced Budgeting training course provides significant value. It offers a comprehensive and practical exploration of various budgeting approaches and metrics. The course aims to enhance your understanding and enable you to apply this knowledge effectively.
By actively using spreadsheets throughout the course, you will gain a deeper understanding of the subject matter. The training will culminate with a case study that focuses on developing a comprehensive budget, allowing you to apply your newly acquired skills in a real-world scenario.
By participating in this course, you will strengthen your expertise in advanced budgeting techniques, enabling you to make informed decisions and contribute to the success of your organization. You will gain practical insights into budgeting approaches and metrics, equipping you with the tools necessary to navigate complex budgeting challenges. Ultimately, this course will empower you to develop and implement effective budgets that align with your organization's strategic goals.
Course Objectives:
At the end of Advanced Budgeting Training Program, participants will be able to:
- Build budget templates and models for their departments or organizations.
- Develop and implement a successful budgetary control system
- Understand the differences between traditional and modern approaches to budgeting so that you can develop an appropriate approach that would suit your environment
- Get acquainted with techniques and tools like forecasting, that are necessary to develop a realistic budget
- Conduct variance analysis explaining the differences between projection and achievement
- Design a comprehensive budget using the approach of your choice along with tools that you will be introduced to at the course
- Apply several forecasting techniques to better manage uncertainties in budgeting.
- Assess capital budgeting decisions using several methods and recommend proper action.
- Utilize Microsoft Excel functions and tools in the budgeting process.
- Evaluate the budgeting process in their organization and recommend improvements.
Who Should Attend?
This Advanced Budgeting Training Course is Ideal for:
- Managing Directors
- Financial Controllers
- Business Development Managers
- Business Planning Managers
- Finance Managers (in various functions)
- Business Unit/Operational Managers
- Management Accountants
- Business Analysts
- Financial Analysts
- Capital Planning Professionals
- Treasury Personnel
Course Outlines:
Budgeting and Planning
- The Budget and the Functions of Management.
- Budget as a Planning Tool.
- Budgets and the Key Financial Statements.
- Top-Down versus Bottom-Up Process.
Budget Cycle, Process and Approaches
- The Budget Cycle
- The Characteristics of Successful Budgeting.
- Making the Budget a Value-Adding Activity.
- Top Ten Problems with Budgeting.
- Choosing the Proper Budgeting Approach:
- Incremental Budgeting.
- Zero-Based Budgeting.
- Flexible Budgeting.
- Kaizen Budgeting.
- Activity-Based Budgeting.
- Rolling (Continuous) Budgets and Forecasts.
- The Master Budget and its Components.
- Operating and Capital Budgets.
- Best Practices in Budgeting.
- Creating a User-Friendly Template.
Forecasting Techniques
- Forecasting Models.
- Qualitative and Quantitative Methods.
- Steps in Developing Forecast Models.
- Time Series and Trend Analysis.
- Data Conditioning Techniques.
- Exponential Smoothing and Moving Averages.
- Simple and Multiple Regression Analysis.
Advanced Capital Budgeting Evaluation Techniques
- Business Risk and Cost of Capital.
- Classifying Investment Projects.
- Cash Flow Estimation.
- Analysing Investment and Operating Cash Flows.
- Time Value of Money Concept.
- The Required Rate of Return.
- Net Present Value (NPV).
- Internal Rate of Return (IRR).
- Multiple Internal Rates of Return.
- Modified Internal Rate of Return (MIRR).
- Profitability Index (PI).
- Pay-Back Period and Discounted Pay-Back Period.
- Capital Rationing.
- Comparing and Evaluating Techniques.
- Sensitivity and Risk Analysis.
Breakeven Analysis and Optimization Techniques
- Cost-Volume-Profit (CVP) Analysis.
- Using CVP to Reach a Target Income.
- Single Product and Multiple Products Breakeven Analysis.
- Working with Budget Constraints.
- Building Optimization Models.