Setting & Controlling Budgets properly and accurately is fundamental to every successful business. This course shows how budgeting is linked to strategy, costing and performance measurement. The purpose of the seminar is to clarify the jargon and methodology of budgeting within the areas of managerial accounting and performance measurement.
Link finance and operation for budgeting purposes and strategy execution
Learn how to build a comprehensive performance measurement system
Master traditional techniques and recent best practices
Develop an understanding of the corporate budgeting process
Be able to interpret the financial impact of strategic directions
Understand the problems of overheads allocation and how Activity Based Analysis may aid decision-making and pricing strategies
Who Should Attend?
Financial officers and planners
Anyone interested and wanted to develop his performance in finance
Day One: 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 important
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
Day Two: 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 the budgeting process in your company?
Top-down vs. bottom-up budget; incremental vs. zero-based
Day Three: Cost Analysis for Budgeting
What is costing? Defining costs
Cost behavior – 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
Day Four: Budgeting: case study day – Controlling the budget variances
What is the situation in your organization?
Is budgeting organized by department and/or projects?
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
Day Five: Beyond Budgeting: Broadening Performance Measurement Systems
Advantages and disadvantages of budgeting
How to 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 scorecard
NOT INTERESTED IN THIS COURSE?
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