Preparing Reliable Budgets

Overview

Learn and master essential budgeting techniques to improve financial control and create the conditions for success.

Who should attend

Managers and staff who are involved in the preparation and use of budgets.

Course objectives

By the end of this course, you will be able to:

> Understand the nature and purpose of budgets
> Know how to prepare reliable budgets
> Use the 'Zero-based' approach
> Avoid the common pitfalls

Course content

Define Budgets and Forecasts
> What are budgets/forecasts?
> What is their purpose and benefit?

Know the Different Approaches
> Historic cost/incremental budgeting
> Zero-based budgeting

Prepare a Budget - Sales and Income
> Communicating the strategic and tactical objectives
> Analysing the market and the products
> Using Z charts to define trends
> Evaluating margins and profitability
> Identifying resources and constraints

Preparing a Budget - Costs and Cost Centres
> Calculating costs of sales
> Counting the overheads
> Allocating cost centres

Apply Checks and Balances
> Using business ratios
> Using key performance indicators to validate budgets

Forecast Cash Flow
> Preparing cash flow forecasts against the budget
> Closing balance sheets and cash flow statements

Achieve the Budget
> Budgets as operating plans
> Budgets and the management reporting system
> Analysing and resolving variances