Why Attend:
Planning and budgeting are must-have skills for all professionals regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device and a control mechanism. In addition, it provides the necessary application tools required to making long-term and short-term planning decisions.
Course Objectives
By the end of the course, participants will be able to:
· Defend the importance of linking an organization's budget with its strategic plan
· Demonstrate how the budget relates to the key financial statements: balance sheet, income statement, and cash flow
· Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used
· Apply cost control tools, analyze management variance reports and take proper corrective action
· Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal
· Utilize cost-volume-profit analysis in making budgeting decisions
Course Outline: (Themes, Concepts, Issues and Skills):
Introduction to the treasury function
· The critical functions of management
· Aligning the budget with the strategy of the organization
· Road map to strategy
· Budget as a planning tool
· Control: the missing link
· Planning pitfalls
The key financial statements
· The accounting system
· The income statement
· The balance sheet
· The cash flow statement
Budgeting: process and approaches
· The advantages of budgeting
· The budget process
· Rolling budgets
· The master budget
· Operating and capital budgets
· The budgeted financial statements
· Approaches to budgeting:
· Incremental budgeting
· Zero based budgeting
· Flexible budgeting
· Kaizen budgeting and continuous improvement
· Activity based budgeting
· Tools of forecasting
· Direct and indirect costs
· Characteristics of an effective budget
· Problems in budgeting
Fixed income securities and bonds’ valuations
· Cost control
· Budget as a control tool
· The control process
· Characteristics of an effective control system
· Responsibility reporting
· Variance analysis: identifying the components of variance
· Variance analysis: taking the corrective action
Capital expenditure budgeting and analysis
· Time value of money
· Simple versus compound interest
· Identifying and analyzing cash flows
· The discount rate: using cost of capital
· Net Present Value (NPV)
· Internal Rate of Return (IRR)
· Profitability Index (PI)
· Pay-Back Period (PBP)
· Accounting Rate of Return (ARR)
· Approval for Expenditure (AFE)
|