Business Forecasting & Budgeting

Overview

This Short Course shows how Forecasting and Budgeting are interlinked with Strategic Planning.

Firstly, the rationale behind Forecasting and its techniques are introduced, as well as the common pitfalls to avoid.

Secondly, the traditional Budget Process is outlined along with common problems and behaviours, and more importantly, how to work these out.

Business Forecasting & Budgeting is more practical than the Finance for Non-Financial Manager Short Course. It focuses more on Management Accounting than on Financial Accounting.

Topics Covered

Budgeting as a Tool for Planning & Management

• The purpose of budgeting is explained.

Linking Budgets to Strategy

• The importance of linking vision with financial reality
• Certain strategic tools are introduced

Developing a Framework to Manage Expectations of Future Performance

• Everyone knows ‘why’ we want to profitable, this is understanding ‘how’

Budget Preparation:  Forecasting the Future

• A framework to forecast future performance is analysed

Fundamental Analysis

• The economy, the industry and the phases of industry life cycles are discussed with their related financial themes

The Budget Process

• The steps in the budget process are explained
• Managing variances

Where Budget Figures Come from

• Different sources of information are discussed and pros and cons supported with empirical research

Budgeting, Variance Analysis and Cost Control

• Operational vs Capital Budgeting (Opex vs Capex)
• Variance analysis
• Costing models

Types of Budgets and Preparation Techniques

• Different types of budgets and their appropriate applications
• Techniques of preparing budgets
• Practical tips

Basics of Budgeting

• Mapping the numbers
• The accounting model is briefly introduced
• Starting to apply accounting concepts in the preparation of budgets
• Working Capital management

Capital Expenditure Budgeting

• Project Appraisal techniques
• Discounted Cash Flow, NPV and Payback

Beyond Budgeting

• Managing beyond the Budget
• Reviewing the Budget
• Selling the Budget

Who should attend

There is no prerequisite knowledge for this Short Course, but it would be advantageous to have some hands-on knowledge of budgets.

Upon attending the Business Forecasting & Budgeting Short Course, you can go further with the Finance for Non-Financial Managers Short Course. It explores Annual Reports, Valuation models and Investment decision making further.

Outcomes

You will gain a better understanding of the purpose of budgeting, how to prepare better budgets and manage for the future expectations of your organisation.