Budgeting Preparation Skills

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  • Fees : 2600 $
  • Date 08 Jul 2018
  • Location Singapore, English

Budgeting Preparation

 

Please see below an outline for our Budgeting and Planning course, which is available as an in-house training course for your staff. The course will be tailored to your company needs.

Introduction

As someone once said “If you fail to plan, you plan to fail”. Budgeting and planning is how we plan to put life into our strategic goals. The budget therefore is the short term plan of how strategies may be achieved. It is the quantification of the activities the company must develop to achieve its short-term goals and lay the foundation for future goals.

The emphasis will be on how to make the budgeting and planning process a meaningful exercise and not just a chore that has to be done once a year. Too often the budgets prepared do not reflect what the business should really be doing but reflect more the hidden agendas of the preparers of the budget, leading to wrong decisions being made. Such decisions impact on the future success of the business in a negative way.

Programme Objectives

  • To provide understanding of how to prepare a financial plan that reflects the strategic goals of an organisation
  • To understand the relationship between financial planning, forecasting and budgeting and integration of the strategic management process
  • The understand the planning process from beginning to end and how to develop the budget
  • To discuss some of the problems associated with budgeting along with “best practices”
  • To show you how to motivate managers and other to “buy in” to the budget process
  • To show how comparison of variances in actual performance against the plan can be used to help control financial importance and their impact on short and long-term plans

Method and Approach

This workshop will be highly participatory and will consist of formal lectures, discussions, case studies and exercises. Where appropriate these will include real issues brought to the workshop by delegates.

Who Should Attend?

  • Executive level managers responsible for budget preparation and management reporting
  • Process owners who require a more in-depth understanding of integrated planning and budgeting techniques
  • Anyone with direct planning and budget responsibility either within an organization or as an external advisor to organizations.
  • Those whom are held accountable for financial performance

Course outline

Day One

  • The complexity of managing contemporary organizations
  • Budgeting and management control systems
  • The critical functions of management
  • The strategic planning process and the budget as a plan
  • Aligning the budget with the organization’s strategy
  • The impact of corporate culture
  • Integrating strategic and financial planning with operational management
  • Budget as a control tool
  • The Balanced Scorecard

Day Two

  • Understanding the business environment

     

     

     

     

    • SWOT
    • PESTLE
    • Porter’s 5 Forces
    • Types of budgets

       

       

       

       

      • Master budget
      • Operating budget
      • Capital budget
      • Financial budget

Day Three

  • Incremental budgeting
  • Zero-based budgeting
  • Fixed budgeting
  • Rolling budgets
  • Kaizen budgeting
  • Forecasting methods
  • Break-even analysis
  • Making assumptions
  • Using trend analysis
  • Characteristics of an effective budget

Day Four

  • Capital expenditure budgeting and analysis

     

     

     

     

    • Time value of money
    • Pay-back period
    • Net present value
    • Internal rate of return
    • Profitability index
    • Accounting rate of return
    • Sensitivity and risk analysis

Day Five

  • Preparing the ground for change in the business via financial planning
  • Communicating the strategy and control points
  • Overcoming internal political resistance
  • Reviewing and measuring progress with proper variance analysis
  • Turnaround and corrective measures
  • Managing implementation as a continuous process
  • How to improve the process in your organization.

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