Advanced Budgeting Workshop

This course is considered the second level in budgeting after our 'Effective Budgeting and Cost Control' program. It goes beyond the theory of budgeting as a concept to cover specific steps to make the budget a value-added process in the organization. By building user-friendly models and applying scenario analysis, management will spend less time gathering data and more time in analyzing it for decision making. Several Microsoft Excel tools are used throughout this course program to make it practical and to provide participants with the skills needed to apply the tools in their organization immediately. Such tools include 'what-if' analysis and the Solver, among many others.

The course also highlights some of the main forecasting models and the detailed evaluation of capital budgeting techniques, all of which are applied in Microsoft Excel and put into practice.

Course Objectives

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

• Create budget templates and models for their departments or organizations
• Apply several forecasting techniques to better manage uncertainties in budgeting
• Evaluate capital budgeting decisions using several methods and recommend proper action
• Utilize Microsoft Excel functions and tools in the budgeting process
• Evaluate the budgeting process in their organization and recommend improvements

Who Should Attend?

Finance directors, managers, controllers, accountants, budget analysts, budget owners and professionals who wish to expand their budgeting knowledge

Course Outline

Budgeting And Planning

• The budget and the functions of management
• Budget as a planning tool
• Budgets and the key financial statements
• Top-down versus bottom-up process

Budget Cycle, Process And Approaches

• The budget cycle
• The characteristics of successful budgeting
• Making the budget a value-adding activity
• Top ten problems with budgeting
• Choosing the proper budgeting approach:
  • Incremental budgeting
  • Zero-based budgeting
  • Flexible budgeting
  • Kaizen budgeting
  • Activity based budgeting
  • Rolling (continuous) budgets and forecasts
• The master budget and its components
• Operating and capital budgets
• Best practices in budgeting
• Creating a user friendly template

Forecasting Techniques

• Forecasting models
• Qualitative and quantitative methods
• Steps in developing forecasting models
• Time series and trend analysis
• Data conditioning techniques
• Exponential smoothing and moving averages
• Simple and multiple regression analysis

Advanced Capital Budgeting Evaluation Techniques

• Business risk and cost of capital
• Classifying investment projects
• Cash flow estimation
• Analyzing investment and operating cash flows
• Time value of money concept
• The required rate of return
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Multiple internal rates of return
• Modified Internal Rate of Return (MIRR)
• Profitability Index (PI)
• Payback period and discounted payback period
• Capital rationing
• Comparing and evaluating techniques
• Sensitivity and risk analysis

Breakeven Analysis And Optimization Techniques

• Cost Volume Profit (CVP) analysis
• Using CVP to reach a target income
• Single product and multiple products breakeven analysis
• Working with budget constraints
• Building optimization models

Course Methodology

A variety of methodologies will be used during the course that includes:

• (30%) Based on Case Studies
• (30%) Techniques
• (30%) Role Play
• (10%) Concepts
• Pre-test and Post-test
• Variety of Learning Methods
• Lectures
• Case Studies and Self Questionaires
• Group Work
• Discussion
• Presentation

Course Fees

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Course Timings

Daily Course Timings
08:00 - 08:20       Morning Coffee / Tea
08:20 - 10:00       First Session
10:00 - 10:20       Coffee / Tea / Snacks
10:20 - 12:20       Second Session
12:20 - 13:30       Lunch Break & Prayer Break
13:30 - 15:00       Last Session