Training on Budgeting, Forecasting & Planning

Training on Budgeting, Forecasting & Planning

About the Program

• By the conclusion of this Budgeting, Forecasting, and the Planning training program, participants will be able to:
• Enhance their strategic thinking capabilities and actively contribute to the fusion of the organization’s strategic management and budgeting procedures.
• Utilize forecasting methods that align with their organization’s strategic planning and budgeting.
• Apply techniques aligned with key financial management principles, including shareholder wealth maximization, cash flow management, time value of money, and risk assessment.
• Understand cost behavior and identify optimal costing methods for financial planning, budgeting, and budgetary control.
• Implement best practices to formulate operating budgets, capital expenditure budgets, and cash flow budgets and forecasts that align with organizational strategic objectives.

Target Audience

This training program is crafted to cater to individuals engaged in budgeting and planning within companies, corporations, government entities, educational institutions, and healthcare organizations.

It is equally beneficial for professionals working in finance, accounting, costing, treasury departments, as well as other financial and non-financial roles. This includes individuals with budget responsibilities or involvement in the planning process, such as:

• Line Managers.
• Project Managers.
• Professional Advisers and consultants.

Training Period

• Classroom: 5 Days
• Online: 7 Days

Modules

Module 1: Strategic Management and Financing

• Strategic Analysis, Strategic choices and evaluation, and Strategic implementation.
• The Links between Strategy, Forecasting, Planning, Budgeting, Performance Measurement.
• Strategic capability and avoiding the Spiral of Death.
• Shareholder Wealth maximization, Corporate and Shareholder value creation.
• Financial Strategy, Dividend Policy, the Agency Problem and Corporate Governance.
• Long-term Financing.
• Debt and Equity; (CAPM); Cost of Debt;  (WACC).
• Capital Structure Optimization Models to minimize WACC.
• Using Strategy Maps to link strategies to Performance Measurement: The Balanced Scorecard.

Module 2: Financial Planning, Forecasting, and Risk Analysis

• The Financial Planning Process and Modelling using Excel.
• Statistical Forecasting Tools and Techniques.
• Time series; moving averages; exponential smoothing; Pareto Analysis; trend progression; linear regression; correlation.
• Forecasting long- and short-term sales revenues, and sales pricing.
• Porter’s generic strategy of cost leadership and differentiation; Bowman’s strategy clock;  life-cycle costing; kaizen costing; value-based pricing.
• Using Excel for Optimum Product mix decisions.
• Short-term Financing, Working Capital, and the Cash Operating Cycle.
• Direct and Indirect Cash Flow Analysis and Cash Flow Forecasting using Excel.
• Uncertainty and Risk:
• Business Risk.
• Financial Risk.
• Systematic Risk.
• Unsystematic Risk.

Module 3: Cost Analysis Techniques

• Cost Behavior and Activities
• Fixed and Variable Costs, Direct and Indirect Costs.
• Product Costs and Period Costs.
• Cost Allocation and Absorption of Overheads.
• Absorption or Full Costing.
• Marginal Costing.
• Cost-Volume-Profit (CVP) and ‘what-if’ analysis using Excel.
• Activity Based Costing (ABC) and Activity Based Management (ABM).

Module 4: Budgeting, Budgetary Control and Performance Improvement

• To Budget or Not – Purposes and Reasons for Budgets.
• Stages in the Budget Preparation Process.
• Preparation of the Master Budget.
• Activity Based Budgeting (ABB).
• Responsibility Accounting and Variance Analysis.
• Standard costing; flexed budgets; budgetary control to measure organizational and management performance.
• Advantages, Disadvantages and Behavioral Aspects of Budgeting.
• The Conflict between Performance Improvement and the Costing System.
• Lean thinking and integrating continuous performance improvement into the Budget Process.

Module 5: Project Appraisal and Capital Budgeting

• The Time Value of Money.
• Future Values.
• Present Values.
• Discounted Cash Flow (DCF).
• Capital investment Project Appraisal.
• Accounting Rate of Return (ARR); payback; Net Present Value (NPV); Internal Rate of Return (IRR); Modified Internal Rate of Return (MIRR); Discounted Payback; Equivalent Annual Cost (EAC).
• Project Risk.
• Sensitivity Analysis; simulation; scenario analysis; NPV break-even.
• Capital Rationing.
• Capital Budgeting and the Profitability Index (PI).

Delivery Method

This program is taught through a mix of practical activities, theory, group work and case studies. Training manuals and additional reference materials are provided to the participants.

CERTIFICATION

Upon successful completion of the training, participants will be awarded a certificate of course completion