Training Course: Spreadsheet Skills for Planning, Forecasting & Budgeting

Introduction

This hands-on, practical course will demonstrate how you can develop spreadsheet models to create a forecast, which can then be utilized to generate business plans and operating budgets with the use of Excel as it is used in practice. The applications will be focused on three crucial aspects of business and financial management - strategic planning, intelligent forecasting, and realistic budgeting. Delegates will learn how accessible the power of Excel is to provide realistic forecasts and prepare flexible budgets. The impact on efficiency in planning and control and therefore return on investment for companies and/or divisions will be startling.

Training Objectives

• Navigate through the features and functions of Excel.
• Distinguish between data and output in spreadsheet architecture.
• Analyze financial statements in order to plan ahead.
• Build effective financial planning models.
• Use forecasting techniques for budget preparation.

Course Outlines

Day 1

Introduction to Spreadsheets using Excel

• The power of Excel for building financial models.
• The Ribbons of Excel with their commands and functions.
• Using formulae: Copying, anchoring, and special pasting.
• Using functions: financial, statistical, and mathematical.
• Review of the financial objectives of the business: ROI, ROA, ROE.
• Overview of Financial Statements.

Case Study: Building a Quick Access Toolbar in Excel and applying it to the analysis of financial statements of a division.

Day 2

Proper Planning

• Classical strategic planning models.
• Cost-volume-profit analysis and Break-Even as a planning example.
• Economic Order Quantity as a planning example.
• What-if analysis to build scenarios and test sensitivity.
• Maximizing and optimizing techniques.
• Linear programming and Solver as optimizing tools.

Case Study: Preparing a planning model and subjecting it to a range of sensitivity analyses in a manufacturing environment.

Day 3

Fantastic Forecasting

• Forecasting in perspective - the Past vs. the Future.
• The necessity to apply a range of different forecasting methods:
  • Qualitative Models used in forecasting.
  • Quantitative Models focussing on time series and regressions methodology.
• Forecasting growth rates.
• Recording, applying, and modifying forecast assumptions.

Case Study: Applying the forecasting functions in Excel to past data and building a model offering various scenarios

Day 4

Beyond Budgeting

• The budget process: Timing and Cycles.
• Setting budgeting objectives and tolerance levels.
• Budgeting Techniques.
• "Beyond Budgeting" compared to traditional budgeting principles.
• Operating and Capital budgets.
• Monthly reporting procedures and timely action.

Case Study: Building budget based on assumptions - Operating Budget, Cash Budget & Capital Budget

Day 5

Putting it together – building the comprehensive model

• Considering the financing mix in strategy.
• Considering the Return to Shareholder as the primary indicator.
• Build your planning model.
• Build your forecasting model.
• Build your budgeting model.
• Link these together in a review.

Case Study: Building an integrated planning, forecasting & budgeting model