Corporate Financial Planning, Budgeting & Control

Introduction

Corporate planning, budgeting, and control are essential in modern organizations. Effective planning, budgeting, and control lead companies to their Mission, Vision, and Goals.

This Corporate Financial Planning, Budgeting & Control training seminar is designed to enable delegates to make corporate financial decisions in an increasingly volatile international marketplace with the view to increase profitability, maintain liquidity and reduce financial risk is a challenge for all organizations regardless of their size.

Course Objectives

• Evaluate the various methods of finance and make successful capital investment decisions.
• Develop effective corporate financial plans aimed at maximising return and minimising risk.
• Prepare, manage and control budgets to support the corporate financial plans.
• Identify and manage financial risk effectively.
• Measure and manage performance effectively.
• Create opportunities for your personal development and increased financial awareness.

Course Outlines

Day 1

Corporate Financial Planning       

• Strategic Planning.
• The Objective of the Firm – Meeting Shareholder & Stakeholder Objectives.
• Agency Theory – The Relationship between Shareholders & Management.
• Creative Accounting and the Case of Enron.
• Financial Management & Financial Planning – The Scope, Role & Responsibilities of Financial Management.
• Preparing a Financial Plan – The Master Budget.
• Forecasting Future Cash-flows and Financial Modelling.
• Time Series Analysis, Correlation & Regression.

Day 2

Financing the Plan                                          

• Sources of Finance – Long Term & Short Term.
• Evaluation of the Types of Finance - Equity vs. Debt Finance.
• Hybrid Finance & Financial Engineering.
• The Dividend Decision.
• The Cost of Capital and Weighted Average Cost of Capital (WACC).
• Capital Asset Pricing Model (CAPM).
• Accounting Rate of Return (ARR).
• Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback.

Day 3

Preparing & Managing Budgets to Support the Financial Plans

• Definition of Budgets, the Budgetary Process and Budgetary Control.
• Types of Budgets-Fixed, Flexible, Incremental and Zero-Based.
• The Purpose / Benefits & Problems / Limitations of Budgets.
• Setting / Implementing Effective Budgets - Eliminating the Problems.
• Responsibility Accounting and Absorption Costing.
• Activity-Based Budgeting / Costing (ABB, ABC).
• Variance Analysis, Cost Behaviour, Break Even Analysis & Sensitivity / What-If Analysis.
• What-If Analysis combined with Du-Pont Analysis.

Day 4

Managing and Controlling Cash Flow to Support the Financial Plan

• Cash vs. Profit & The Cash Conversion Cycle.
• Calculating and Managing the Cash flow Cycle.
• Cash Flow Ratios.
• Working Capital.
• The Cost of Maintaining Working Capital.
• Maintaining the Optimum Level of Working Capital.
• Working Investment Ratios.
• Preparing a Monthly Cash Flow Forecast.

Day 5

Managing Financial Risk        

• Risk Management & Types of Risk.
• Identifying Risk – SWOT Analysis.
• The Major Quantitative & Qualitative Risks Facing Companies.
• Establishing a Risk Management Strategy.
• Financial Risk Management & Hedging Techniques.
• Managing Exchange Rate & Interest Rate Risk.
• Derivatives-Forwards, Futures, Options & Swaps.
• Risk Management Glossary of Terms.