Master Budgeting & Forecasting: Advanced Training Course

Introduction

This leading-edge Budgeting, Forecasting, and the Planning Process training provide the theoretical basis and necessary skills to develop world-class strategic planning, forecasting, and budgeting processes. A strategy is a long-term plan of what an organisation is going to do to achieve its overall policy. This Finance & Budgeting training seminar will enable delegates to develop a framework that links strategies to annual budget and targets and aims for world-class levels of management and organisational performance.

A budget is a short-term plan of how an organisation quantifies the operational activities required to achieve its long-term strategy. This Budgeting, Forecasting, and the Planning Process training course will provide delegates with the skills and forecasting techniques to develop a budget as a plan, and use control budgets and analysis of variances to actual to identify areas in which financial performance may be improved.

Course Objectives of Budgeting, Planning & Forecasting

Create budget templates and models for their departments or organizations
Improve their ability to think strategically and participate in the integration of the organisation’s strategic management and budgeting processes
Use forecasting techniques most appropriate to their organisation’s strategic planning and budgeting
Apply the techniques that relate to the key principles of financial management: shareholder wealth maximisation; cash flow; time value of money; risk
Appreciate the behavior of costs and identify the costing methods that may best be used in financial planning, budgeting, and budgetary control
Use best practice to develop operating budgets, capital expenditure budgets, and cash flow budgets and forecasts in line with organisational strategic objectives

Budgeting, Planning & Forecasting Course Outlines

Day 1

Strategic Management and Financing

Strategic Analysis, Strategic choices, and evaluation, and strategic implementation
The Links between Strategy, Forecasting, Planning, Budgeting, Performance Measurement
Strategic capability and avoiding the Spiral of Death
Shareholder Wealth maximisation, Corporate and Shareholder value creation
Financial Strategy, Dividend Policy, the Agency Problem, and Corporate Governance
Long-term Financing
- Debt and Equity; Cost of Equity using Dividend Growth and Capital Asset Pricing Model (CAPM)
- Cost of Debt; Weighted Average Cost of Capital (WACC)
Capital Structure Optimisation Models to minimise WACC
Using Strategy Maps to link strategies to Performance Measurement: The Balanced Scorecard

Day 2

Financial Planning, Forecasting, and Risk Analysis

The Financial Planning Process and Modelling using Excel
Statistical Forecasting Tools and Techniques
- Time series; moving averages; exponential smoothing
- Pareto Analysis; trend progression; linear regression; correlation
Forecasting long- and short-term sales revenues, and sales pricing
- Porter’s generic strategy of cost leadership and differentiation
- Bowman’s strategy clock; full cost pricing; marginal cost pricing
- Target cost pricing; life-cycle costing; kaizen costing; value-based pricing
Using Excel for Optimum Product mix decisions
Short-term Financing, Working Capital, and the Cash Operating Cycle
Direct and Indirect Cash Flow Analysis and Cash Flow Forecasting using Excel
Uncertainty and Risk
The Choices available to minimise and mitigate risk

Day 3

Cost Analysis Techniques

Cost Behaviour and Activities
Fixed and Variable Costs, Direct and Indirect Costs
Product Costs and Period Costs
Cost Allocation and Absorption of Overheads
Absorption or Full Costing
Marginal Costing
Cost-Volume-Profit (CVP) and ‘what-if’ analysis using Excel
Activity-Based Costing (ABC) and Activity-Based Management (ABM)

Day 4

Budgeting, Budgetary Control, and Performance Improvement

To Budget or Not – Purposes and Reasons for Budgets
Stages in the Budget Preparation Process
Preparation of the Master Budget
Activity-Based Budgeting (ABB)
Responsibility Accounting and Variance Analysis
Advantages, Disadvantages, and Behavioural Aspects of Budgeting
The Conflict between Performance Improvement and the Costing System
Lean thinking and integrating continuous performance improvement into the Budget Process

Day 5

Project Appraisal and Capital Budgeting