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Objectives

• By the end of this course, participants will be able to:
  • Improve your ability to accurately project expenses
  • Build a budget that glides through approval channels without a hitch
  • Discover steps for measuring actual progress against budget .
  • Justify expenditures using the right logic and language
  • Critical responses that address and arrest budget variances
  • A complete, easy-to-understand glossary of terms dealing with every aspect of your budgeting process
  • Checklists, worksheets and formulas that would take years to collect on your own
    The ability to forecast profits that will not go unnoticed
  • Reduce the time you spend gathering data for your budget – quickly identify what you need and where you can get it
  • Long run vs. short run: What you need to know about each before you budget
  • Learn which items must be figured into your budget whether you’re building one from scratch or working from a pre-approved format
  • Work with confidence when the expenses are greater than the revenues .

The Delegates

• Whether you’re developing a budget or implementing one, learning the proven techniques in this workshop will make all the difference in the strength and success of your budget and your career. So, if you’re a:
  • Senior personnel
  • Supervisor
  • Administrator
  • Department head
  • Key player on any budgeted team
  • Purchasing decision-maker

The Contents

• Introduction and course overview.
• What and Why of budgeting :

• • Budgeting and Reporting Overview: So You Want Perfect Analytics
  • Getting started: Budgeting is a communication process
  • The key benefits of “good” budgeting and the pitfalls of “bad” budgeting
  • Essential elements in planning any viable budget
  • Know your organization’s budgeting “environment”
  • Putting the pieces together: The budget preparation phase – planning is most of the battle
  • Monitoring the approved budget: Do more than just “live with it” … succeed with it!
  • Administering a Budget
  • Budgets are financial statements: How do we use them effectively. What do they tell you about the past … the future?
  • Learn how to use them to pinpoint organizational strengths and weaknesses
  • The income statement: What does it measure? What is missing from it?
  • The balance sheet budget: a measure of health of your department or organization

• Administering a budget :

• • The capital budget: The long-term commitment of viability. Just how practical are your plans for expansion, research and development, new personnel, etc.?
  • The cash budget: The first line of survival
  • Spot the key problems and opportunities every budgeting process uncovers
  • Essential Budgeting Tools
  • Methodology of effective budgeting
  • The budgeting checklist
  • Unit-cost budgeting: ideal for operations-oriented environments
  • Fixed-cost budgeting: the tool budget-builders reach for most often
  • Course Planning and Budgeting: A more strategic look at budgeting
  • Review the methods available to address your unique budgeting challenges
  • Zero-based budgeting: essential for justifying proposed expenditures from the ground up
  • Activity-Based Budgeting (ABB): Fad or Fact?

• Analyzing budget ‘types’

• • The final plan: sales plan, production plan, purchases budget, Labor budget, Operating expenses, Capital budget
  • The sales plan begins with P X Q
  • How to prepare a production budget
  • Prepare a manufacturing budget including: budgeting for materials, direct labor and overhead
  • How to plan and prepare a research and development budget
  • Budgeting terms made simple; a glossary of words you’ll use again and again

• Building the budget :

• • It all begins with sales or revenues
  • Where do revenues come from?
  • Where do the pieces fit? Capital expense or operating expense?
  • Examine capital expenditure requests
  • Methods of economically evaluating capital expenditures and projects
  • Controlling general and administrative expenses
  • Develop unit indicators for budget preparation and control
  • Identify overhead and determine proper allocation methods
  • Budget Development
  • “Cash” versus “accrual” accounting – why are they different?
  • What are the “rules” for budgeting and who makes them?
  • Use basic accounting technology to properly compare cash inflow to outflow
  • Post approval, what steps to undertake after the budget is approved
  • Top down or Bottom up? Which one works and why
  • Management by Objectives, results that matter

• Budget variances :

• • Is the alleged variance within your control? What are some factors beyond your control? The right perspective will make the difference
  • Learn where to look first for variance factors hardest to find
  • How to know when and how your budget is warning you of outside interference
  • Tips on how to respond to requests for variance explanations
  • Monitoring the Budget
  • Monitoring methods such as Management by Exception
  • Understand the difference between fixed, variable and semi-variable costs using a simple but effective illustration
  • Expect the unexpected: some costs simply can’t be budgeted – recognize them and incorporate them
  • Learn and use the unit-cost concept immediately and effectively
  • Establish and track monthly targets within your annual budget
  • When to “break” the budget

The Discount

10% in case of Three P. (or more)