Description

Who Should Attend?

This program is designed for those responsible for preparing / completing budgets for their departments, as well as those accountable for managing their organization’s budget process, but who have had no formal training or experience. It is very useful for managers and non-managers in any industry, from small to large companies / organizations, who need to keep a tight control on costs in a challenging business environment.

About The Program

Successful budgeting skills are key for those who want to succeed in business, since budgets are related to a company’s strategic objectives, and help decide the overall direction. Getting budget numbers wrong can have severe consequences. But often, managers and others responsible for budgets are just assumed to understand how to budget, even though there are many aspects of budgeting that are not ‘intuitive’. Rather than learn by trial and error, after this program you can get your budgets right the first time!

This course introduces you to the basic knowledge necessary for proper budgeting, and then builds on that knowledge. Delegates will learn to develop practical budgeting skills, to enable them to meet senior management’s expectations, by consistently and continuously delivering operational objectives, while achieving financial performance goals.

Depending on delegate requirements, a short section on how budgeting for ‘non-profits’ is different to ‘for-profit’ budgeting, may be included.

This course is very interactive, so there are no long periods of dry lectures. Budgeting is explained in easy-to-understand language, and then reinforced with practical exercises and activities.

Course Objectives

• To learn the difference between a budget and a forecast
• To learn the steps to creating a budget
• To understand the different approaches to budgeting
• To learn how to project current year sales
• To understand the basics of production and raw material budgeting
• To learn how to create sales budgets
• To learn how to budget for new businesses
• To learn the difference between budgeting for fixed expenses, and budgeting for variable expenses
• To learn how to budget for payroll
• To understand how capital budgeting is different to other budgeting
• To learn about Return On Investment (ROI) in order to make good decisions about capital budgets
• To understand how to allocate budgets properly by month
• To understand how to set up a cash budget
• To use variance analysis to assess performance against budget
• To learn about budgeting for projects

What You Will Gain

• Greater confidence from senior management, fellow managers, and subordinates, by demonstrating budgeting competence
• Firm knowledge of budget terminology and techniques
• An ability to make meaningful contributions to the company’s budget process
• Many practical techniques which will take the mystery out of the budgeting process

Program Content

DAY ONE

• The Benefits Of Budgeting
• The Difference Between A Budget And A Forecast
• Strategic Plans
• Different Budget Approaches:
  > Zero-Based Budgeting
  > Top-Down
  > Bottom-Up
  > Rolling / Continuous
  > Flexible Budgets
• Components Of The Master Budget
• Sales Budget
  > Current Year Projections
  > How To Create A Sales Plan
  > Product Life Cycle
  > Sales By Month
• Budgeting For A New Business
• Budget Templates For Unit Managers
• Budgeting For Fixed And Variable Expenses
• Production And Raw Materials Budget
• Payroll And Headcount Budget
• Budgeting For Contingencies
• How To Choose A Fiscal Year

DAY TWO

• Pro Forma Income Statements
• Steps To Creating A Budget
• Budget Review And Variance Analysis
  > Price / Volume Variance
  > Labour Variances
• Cash Budgets
• Capital Budgeting
• Investment Appraisal Techniques
  > Payback Period
  > Average Rate Of Return (ARR)
  > Net Present Value (Present Value And Discounted Cash Flow)
  > Internal Rate Of Return (IRR)
• Budgeting For Projects
  > Estimation Techniques
  > Project Reserves
  > Earned Value Management

Before the course each delegate will be asked to complete a Pre-Course Briefing Form to determine their individual objectives for attending the course. These objectives will be used by the Tutor to give on-target training that is focused on the individual delegates.

At the end of the course each delegate will be asked to complete a Personal Development Plan that can be used as part of future appraisals, and that will also be an important tool for management reference.

Total ONLINE Investment: AED 2,900/- + VAT