Setting & Controlling Budgets
Overview
Setting and controlling budgets accurately and adequately is fundamental to every successful business. This budget setting and control seminar shows how budgeting is linked to strategy, costing, and performance measurement. The budget setting and control seminar aims to clarify the jargon and budgeting methodology within managerial accounting and performance measurement. Enhancing Budgeting Proficiency In a dynamic corporate environment, the budgeting and cost control course is designed not merely as a financial budgeting course but as a comprehensive experience to enhance economic and operational synergy. Participants aiming to refine their budget management skills and acquire budgeting skills will find the material aligning with the latest methodologies in budgeting and cost control training courses.
Objectives
At the end of this budget setting and control course, the participants will be able to: Link finance and operation for budgeting purposes and strategy execution. Learn how to build a comprehensive performance measurement system. Develop an understanding of the corporate budgeting process. Interpret the financial impact of strategic directions. Understand the problems of overhead allocation and how Activity-Based Analysis may aid decision-making and pricing strategies. Understand the budgeting methods most beneficial to them. Understand how to construct a relevant and efficient budget. Evaluate the usefulness of costing techniques in accurately calculating and ensuring profitability. Reinforce and expand their knowledge by linking budgeting to strategy and performance measurement. Expand their understanding by linking financial and operational issues. Learn to be aware of the non-financial implications of budgeting.
Audience
The Setting & Controlling Budgets training seminar is designed for professionals across corporations, government entities, and other organizations. While it is particularly beneficial for financial analysts, controllers, accountants, and departmental managers involved in planning and budget preparation, it is equally valuable for business professionals in diverse functions, including: General Management Estimating & Costing Operations Facilities Management Sales & Marketing Quality Management Engineering Project Management Procurement Logistics Research & Development Asset Management Human Resources
Methodology
Individuals with varied experience and knowledge are encouraged to share their own experience and consider alternative approaches introduced during the training seminar. Formal presentations will be supported by numerous worked examples, the use of real-world scenarios and group discussion. In this supportive and interactive workshop environment, your Instructor will facilitate team case studies and exercises that will reinforce the hands-on application of each of the learning points and topics covered. Difficult mathematical concepts are minimised wherever possible and handled in a visual and user-friendly way – our aim is for this to be an enjoyable learning experience.
Outline
Unit 1: Strategic and Financial Planning Financial vs. managerial accounting. Exploring the linkages between strategy, budgeting, costing, and performance measurement. Understanding what strategic planning is and why it is essential. Mission vision strategy goals and objectives. The outside environment and the internal context: SWOT and PESTEL analysis. What is happening in your company? Looking for the drivers of value creation. Unit 2: The Framework for Budgeting What is a budget? Why create a budget? The budgeting framework Various types of budgets. The budgeting process and the human side of budgeting. Sales forecasting and budgeting schedules. What is your company's budgeting process? Top-down vs. bottom-up budget. Incremental vs. zero-based. Examples of budgetary schedules. Unit 3: Cost Analysis for Budgeting What is the cost? Defining costs. Cost behavior is fixed and variable. "Breakeven" models - the equation method. The contribution margin concept. Direct and indirect costs. Traditional vs. activity-based costing. Product vs. period costs. Unit 4: Controlling The Budget Variances What is the situation in your organization? Do departments and projects organize budgeting? Budget variance analysis. Describe the difference between a static budget and a flexible budget. Compute flexible-budget variances and sales-volume variances. Explain why standard costs are often used in variance analysis. Integrate continuous improvement into variance analysis. Unit 5: Beyond Budgeting: Broadening Performance Measurement Systems Advantages and disadvantages of budgeting. How do you improve budgeting in your organization? What next? Beyond the budget. The balanced scorecard: linking strategy to budgeting to performance measurement. Financial perspective, customer perspective. Internal business process perspective, learning, and growth perspective. Developing and adapting the balanced scorecard.