Introduction
Budget Preparation is one of the major imporatant activities for any commercial or non - commercial entity. Budgeting enables the organization to have a plan for future expenditures that can easily be compared to the actual ones. Hence budgeting serves both a planning and a control tool. Budget preparation requires a set of skills and thorough professional knowlege in order to ensure that the drifting process proves succesful in the future.
Course Objectives of Effective Budget Preparation Skills
- Learn Costing and Budgeting Terminology used in Business
- Understand the Importance of a Well-Defined Costing and Budgeting Process
- Determine Full Costs of Outputs for the Goods and Services provided
- Master traditional Techniques and recent Best Practices
- Link Finance and Operation for Budgeting Purposes and Strategy Execution
- Learn How to Build a Comprehensive Performance Measurement System
Effective Budget Preparation Skills Course Outlines
Day 1
BUDGETING AND ITS ROLE WITHIN THE MANAGEMENT PROCESS
- The Role of Budgeting within Management Accounting
- Linking Costing and Budgeting to Strategy and Performance Measurement
- The Process of Value Creation: Implications for Budgeting
- What is a Budget and Why Costing is Fundamental?
- Budgets - The Financial Expression of the Operating Plan
- Linking Financial and Operational Issues
- Behavioural Implications of Budgeting
- Case Discussion and Examples
Day 2
COSTS ANALYSIS FOR BUDGETARY PURPOSES
- Costing for Budgeting: Why?
- Cost Terms and Purposes
- Fixed and Variable Costs
- Cost, Volume, Profit (CVP) Relationships
- The Key Concept of Contribution Margin
- Direct and Indirect Cost – The Allocation Problem
- Traditional Methods vs. Activity Based Costing (ABC)
- Case Discussion and Examples
Day 3
THE FRAMEWORK FOR BUDGETING
- Elements of the Budgeting Framework
- Key Concepts and Terminology
- Advantages and Disadvantages: Critical Issues to be Discussed
- Overview of the Financial Statements
- Balance Sheet, Income Statement, and the Statement of Cash Flows
- Introducing Cost Analysis for Decision-Making
- The Importance of Understanding Full Costs
- Case Discussion and Examples
Day 4
FLEXED BUDGETS AND VARIANCE ANALYSIS
- Budgeting for Management Control Purposes
- Explain Why Standard Costs are used in Variance Analysis
- Describe the difference between a Fixed Budget and a Flexed Budget
- Compute Flexed Budget Variances and Sales Volume Variances
- How to Interpret Variance Analysis?
- Integrate continuous improvement into Variance Analysis
- Is Budgeting Enough?
- Case Discussion and Examples
Day 5
BEYOND BUDGETING: BROADENING PERFORMANCE MEASUREMENT SYSTEMS
- Shortcomings of Traditional approaches to Budgeting and Measurement
- Linking Financial to Operational Issues
- Linking Strategy to Performance Measurement
- The Balanced Scorecard and Six Sigma
- Financial Perspective
- Customer Perspective
- Internal Business Process Perspective
- Learning and Growth Perspective
- Developing and Adapting the Scorecard
- Case Discussion and Examples
Credits: 5 credit per day
Course Mode: full-time
Provider: Blackbird Training Centre
