Budgeting and Forecasting for Modern Organisations

Companies operate in an increasingly competitive and volatile environment and it is critical that they have the use of financial tools that can help them survive and prosper. The end result of the budgeting process is the preparation of plans and actions for future periods. These plans co-ordinate and reflect the various activities within an organisation and assist in organisational control, decision-making and performance evaluation.
COURSE PROFILE

The planning process. Establishment of objectives - Identification of strategies - Evaluation and selection of alternative strategic objectives

Budgeting: in the beginning. Identifying the limiting factors - Budget assumptions and limitations - Budget committee and co-ordination

Budgeting: the next stage. Determining the sales budget - Preparation of functional and operational budgets

Budgeting: final stages. Capital expenditure budgets - Simulation and sensitivity analysis

Budgeting: implementation. Budget phasing - Budget distribution - Budget reporting and monitoring

Application of quantitative techniques to budgeting. Cost estimation methods - Regression analysis - Learning curve applications - Economic order quantity - Probability theory and inventory management

Information technology and budgeting. Spreadsheets, databases and the internet

Management control systems. Feedback controls - Feed-forward controls - Responsibility centres

Alternative budgeting approaches. Flexible budgeting - Activity based budgeting - Zero based budgeting

Modern performance management and evaluation

SKILLS ATTAINED

Creating and assessing budgets
Developing activity based budgets
Identifying and establishing financial plans
Developing a capital expenditure budget
Creating financial forecasts
Implementing zero based budgeting techniques
Applying regression analysis techniques
Creating inventory management procedures
Identifying performance targets and opportunities
Financial management skills