Advanced Budgeting Workshop

Introduction

This course is considered the second level in budgeting, following our "Effective Budgeting and Cost Control" program. It moves beyond the theory of budgeting as a concept and delves into specific steps to make budgeting 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 analyzing it for informed decision-making. Several Microsoft Excel tools are used throughout the course, making it practical and providing participants with the skills to apply the tools immediately in their organizations. These tools include 'what-if' analysis, solver, and many others.

Course Objectives

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

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

Course Outlines

Day 1: Budgeting and Planning

• Budget and management functions.
• Budget as a planning tool.
• Budget and key financial statements.
• Top-down versus bottom-up process.

Day 2: Budget Cycle, Process, and Approaches

• The budget cycle.
• 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.
  • Master budget and its components.
  • Operating and capital budgets.
• Best practices in budgeting.
• Creating a user-friendly budget template.

Day 3: 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.

Day 4: Advanced Capital Budgeting Evaluation Techniques

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

Day 5: Breakeven Analysis and Optimization Techniques

• Cost Volume Profit (CVP) analysis.
• Using CVP to achieve target income.
• Breakeven analysis for single and multiple products.
• Working with budget constraints.
• Building optimization models.

Why Attend this Course: Wins & Losses!

• Learn advanced budgeting techniques and apply them directly in financial planning.
• Gain the skills necessary to develop strong financial strategies and create accurate budgets using Excel tools.
• Learn budget forecasting techniques and how to manage the uncertainties in financial planning.
• Evaluate capital budgeting decisions using advanced tools like NPV and IRR.
• Apply strategic financial planning strategies that enhance financial efficiency within the organization.

Conclusion

This Advanced Budgeting and Strategic Financial Planning course equips participants with the tools and skills necessary to improve budgeting capabilities and financial decision-making. Whether you're managing operating budgets or capital budgets, you'll be able to leverage advanced techniques like sensitivity analysis, forecasting, and capital budgeting evaluation to achieve optimal financial outcomes for your organization.

By the end of the course, you'll be equipped to make strategic, informed decisions that contribute to better long-term financial performance.