YCWPD 010 - Budgeting and Forecasting: Understanding your Numbers

Description

Effective management of business’ finances is critical to the long term success of any business. Many professionals are responsible for budgets & forecasts, but never took any courses to learn the fundamental principles of budgeting and forecasting. This hands-on intensive 2-day course targets professionals from non-financial background, who need to understand the fundamental budgeting principles and forecasting methods, budget process, and want to improve their financial literacy.

This course covers core budgeting concepts: costing methods, budget process, capital budgeting, revenue forecasting, cost accounting, budget analysis and the balanced scorecard.

The course shows also how Microsoft Excel™ is applied in budgeting and forecasting techniques, such as pivot tables and management of financial databases. Recent research reveals that nearly 75% of North American companies use Excel as their primary budgeting and forecasting tool.

Use of case methodology and exercises to create, execute and analyze different types of budgets, perform Cost-Volume-Profit and Break-even analysis.

Optimization of financial decision making through Strategic Planning and the Budgeting Process, Capital Investment Appraisal, Financing and Cost of Capital, Costing Techniques, Corporate Budget Process, Forecasting Methods, and Budget Controls.

Focus on budget development issues (such as transparency) and execution.

The course does not teach financial accounting.

Topics Covered

• Understand Strategic Planning

1. Definition
2. Employee commitment
3. Strategies: planning and forecasting
4. Corporate strategy and operational plans: Correlation
5. Planning process

• Tie the Strategic Plan to the Budget

1. Link between the strategic plan and the budget
2. Rolling budget approach
3. Synergy: budget, cash flow, strategic plan

• Use different types of budgets:

1. Fixed and flexible budgets
2. Zero based budget
3. Activity Based Budgeting (ABB)

• Select optimal financing sources

1. Cost of debt
2. Cost of equity
3. Cost of mix source

• Monitor Capital Structure (Debt vs. Equity)

1. Ratios
2. Capital market
3. Cash flows statement

• Perform Cost-Volume-Profit and Break-even Analysis

1. Assumptions
2. Cost-Volume-Profit (CVP)
3. Break-even

• Apply Standard and Activity Based Costing (ABC)

1. Pricing
2. Cost

• Prepare a budget forecast

1. Horizon and market condition : scenarios
2. Historical data and extrapolation
3. Excel functions
4. Reporting

• Execute budgetary control

1. Objectives
2. Controls
3. Assessments and adjustments

Learning Outcomes

At the end of this course the participant is able to:

• Understand Strategic Planning
• Tie the Strategic Plan to the Budget
• Use different types of budgets: fixed, flexible, zero based and Activity Based Budgeting (ABB)
• Select optimal financing sources
• Monitor Capital Structure (Debt vs. Equity)
• Perform Cost-Volume-Profit and Break-even Analysis
• Apply Standard and Activity Based Costing (ABC)
• Prepare a budget forecast
• Execute budgetary control

Who Should Attend?