Advanced Budgeting Workshop

Objectives:

By the end of the program, participants will be able to:

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

The Content:

Budgeting and Planning

• The Budget and the Functions of Management
• Budget as a Planning Tool
• Budgets and the Key Financial Statements
• Top-Down versus Bottom-Up Process

Budget Cycle, Process and Approaches

• The Budget Cycle
• The 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
• The Master Budget and its Components
• Operating and Capital Budgets
• Best Practices in Budgeting
• Creating a User-Friendly Template

Forecasting Techniques

• Forecasting Models
• Qualitative and Quantitative Methods
• Steps in Developing Forecast Models
• Time Series and Trend Analysis
• Data Conditioning Techniques
• Exponential Smoothing and Moving Averages
• Simple and Multiple Regression Analysis

Advanced Capital Budgeting Evaluation Techniques

• Business Risk and Cost of Capital
• Classifying Investment Projects
• Cash Flow Estimation
• Analyzing Investment and Operating Cash Flows
• Time Value of Money Concept
• The Required Rate of Return
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Multiple Internal Rates of Return
• Modified Internal Rate of Return (MIRR)
• Profitability Index (PI)
• Pay-Back Period and Discounted Pay-Back Period
• Capital Rationing
• Comparing and Evaluating Techniques
• Sensitivity and Risk Analysis

Breakeven Analysis and Optimization Techniques

• Cost-Volume-Profit (CVP) Analysis
• Using CVP to Reach a Target Income
• Single Product and Multiple Products Breakeven Analysis
• Working with Budget Constraints
• Building Optimization Models