Budget Preparation Skills

Course Overview

The course will be conducted along workshop principles designed with case studies, course materials, formal lectures and interactive solution driven examples. Relevant and matching case studies will be provided to the delegates to visualize the proper application of each tool in the operations environments. All the learning points will be supported with practical examples and exercises. Complicated and difficult to understand mathematical concepts are reduced and handled in such a way that it become easy to understand with supporting examples.

Who Should Attend?

The employees who are responsible for maintaining the database and entering the data into budgeting system or the employees providing trainings to the concerned personnel’s on how to enter the information. Those professionals who are willing to have a firm grip on the numbers and to gain control of the firm’s financial standing can attend this course. Professionals as mentioned below can pursue this course such as:

• R & D professionals
• Sales & marketing professionals
• Financial professionals
• General accounting professionals
• Business unit professionals
• Anyone who is willing to understand the basic concepts of cost and budgeting

Program Outline

Role of budgeting within the management process

• Budgeting role defined within management accounting
• Associate budgeting and costing to performance and strategy measurement
• Budgeting Implications: Process of value creation
• Budget: definition and the reason behind why costing is fundamental
• Operating plan-The financial expression: Budgets
• Associating operational and financial issues
• Budgeting: Behavioural implications
• Case examples and discussion

Method of Cost Analysis for Budgetary Purposes

• Why costing for budgeting?
• Cost purposes and terms
• Variable and fixed costs
• Volume, profit (CVP), cost relationships
• Contribution margin: The key concept
• The allocation problem: Indirect and Direct cost
• Activity based costing (ABC) versus traditional procedures and methods
• Case examples and discussion

Budgeting Framework

• Budgeting framework: Elements
• Key features, concepts and terminologies
• Issues for discussion: Merits & Demerits
• Financial statements overview
• Statement of cash flows, income statement and balance sheet
• Cost analysis introduction for decision making
• Significance of recognizing full costs
• Case examples and discussion

Concept of variance analysis and flexible budgets

• Management control purposes: Budgeting
• Why standard costs are considered in variance analysis: Explanation
• Difference between flexed and fixed budget: Description
• Calculate sales volume and flexed budget variances
• Procedure to interpret variance analysis
• Merge continuous improvement into variance analysis
• Budgeting: Is it enough?
• Case examples and discussion

Expand performance measurement systems: Beyond Budgeting

• Limitations of traditional approaches to measurement and budgeting
• Associating financial to operational issues
• Associating strategy to performance measurement
• Six sigma and the balanced scorecard
• Financial perspective
• Customers perspective
• Internal business process perspective
• Growing and learning perspective
• Adapting and growing the scorecard
• Case examples and discussion

Program Objectives

By the end of the program, participants will be able to:

• Learn budgeting and cost terminologies used in businesses
• Recognize the significance of a well-defined budgeting and costing process
• Decide the costs of outputs for services and goods provided
• Adopt recent and traditional best practices
• Associate operation and finance for strategy execution and budgeting purposes
• Learn the ways to develop a comprehensive performance measurement system