Setting & Controlling Budgets

Start Date: 16 Jun 2024
End Date: 20 Jun 2024
Duration: 5
Country: London / UK
Category: Finance, Accounting & Investment


Setting & Controlling Budgets properly and accurately is fundamental to every successful business. This seminar shows how budgeting is linked to strategy, costing and performance measurement. The purpose of the seminar is to clarify the jargon and methodology of budgeting within the areas of managerial accounting and performance measurement.

Key learning objectives include:

         Strategic planning

         The linkages between planning, budgeting, costing and performance measurement

         The features of budgetary control

         Cost analysis: fixed vs. variable costs (CVP analysis); direct vs. indirect costs (traditional method and activity-based costing)

         The role of full costing and contribution margin

         Advantages and disadvantages of budgeting


         Link finance and operation for budgeting purposes and strategy execution

         Learn how to build a comprehensive performance measurement system

         Master traditional techniques and recent best practices

         Develop an understanding of the corporate budgeting process

         Be able to interpret the financial impact of strategic directions

         Understand the problems of overheads allocation and how Activity Based Analysis may aid decision-making and pricing strategies

Training Methodology

The seminar is based on a combination of interactive activities - group and individual exercises, case studies, and discussions.

The environment will be a supportive one in which individuals with varying degrees of experience will be encouraged to share the approaches they currently use as well as try out new ones that they encounter on the seminar. The seminar speaker will be on hand to answer any questions a delegate may have and to act as a facilitator for building and applying new approaches.

Organisational Impact

         Better understanding of the strategic planning process

         Cost and budgeting awareness will be enhanced

         Higher chances to select a budgetary system that works

         Broadened knowledge of performance management techniques

         Better attitude to link cost and budgeting to strategy and performance measurement

         Deeper understanding of cause and effect relationship for budgeting purposes

Personal Impact

         Delegates will understand the budgeting methods most useful to them

         They will understand how to construct a relevant and efficient budget

         They will learn to evaluate the usefulness of costing techniques in accurately calculating and ensuring profitability

         They will reinforce and expand their knowledge by linking budgeting to strategy and performance measurement

         They will broaden their understanding by linking financial and operational issues

         They will have better awareness of non-financial implications of budgeting

Who Should Attend?

         The staff person who will be responsible for entering data into the budget system or training others how to enter information

         Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job

         Financial Professional, Professional R&D, Sales/Marketing Professional, General Accounting Professional, Business Unit Professional

         Anyone who wants to understand the basics of budgeting and costing



Strategic and Financial Planning

         Financial vs. managerial accounting

         Exploring the linkages between strategy, budgeting, costing and performance measurement

         Understanding what strategic planning is and why it is important

         Mission; Vision; Strategy; Goals and Objectives

         The outside environment and the internal context: SWOT and PESTEL analysis

         What is happening in your company

         Looking for the drivers of value creation

         Examples and cases


The Framework for Budgeting

         What is a budget - why create a budget?

         The budgeting framework

         Various types of budgets

         The budgeting process and the human side of budgeting

         Sales forecasting and budgeting schedules

         What is the budgeting process in your company?

         Top down vs. bottom-up budget; incremental vs. zero-based

         Examples of budgetary schedules


Cost Analysis for Budgeting

         What is costing? Defining costs

         Cost behavior Fixed and variable

         Breakeven models - The Equation Method

         The contribution margin concept

         Direct and indirect costs

         Traditional vs. Activity Based Costing

         Product vs. period costs

         Case study and examples


Budgeting: case study day - Controlling the budget variances

         What is the situation in your organization?

         Is budgeting organized by department and/or projects?

         Budget variance analysis

         Describe the difference between a static budget and a flexible budget

         Compute flexible-budget variances and sales-volume variances

         Explain why standard costs are often used in variance analysis

         Integrate continuous improvement into variance analysis

         Case study, examples and exercises


Beyond Budgeting: Broadening Performance Measurement Systems

         Advantages and disadvantages of budgeting

         How to improve budgeting in your organization

         What next? Beyond the Budget

         The Balanced Scorecard: linking Strategy to budgeting to Performance Measurement

         Financial perspective, Customer perspective

         Internal Business Process perspective, Learning and growth perspective

         Developing and adapting the scorecard

         Case study illustration

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