Cairo From
COURSE DESCRIPTION:
Planning and budgeting are must-have skills for all professionals, regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device, and a control mechanism. In addition, it provides the necessary application tools required to make long-term and short-term planning decisions.
COURSE OBJECTIVES:
By the end of the course, participants will be able to:
· Defend the importance of linking an organizations budget with its strategic plan
· Demonstrate how the budget relates to the balance sheet, income statement, and cash flow statement
· Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used
· Apply cost control tools, analyze management variance reports, and take proper corrective action
· Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal
· Utilizecost-volume-profit analysis in making budgeting decisions
WHO SHOULD ATTEND?
· All managers, supervisors and analysts who prepare or use management budgets, Senior accountants in cash and banking.
TARGET COMPETENCIES:
· Interpreting financial statements
· Planning and budgeting
· Cost control
· Capital budgeting
· Applyingcost-volume-profit analysis
· Utilizing break even analysis
COURSE METHODOLOGY:
· Thiscourse focuses on exercises, case studies, and individual and grouppresentations.
COURSE OUTLINE:
DAY 1:
· Planning and the Functions of Management
o The critical functions of management
o Budget as a planning tool
o Control: The missing link
o Roadmap to strategy
o Aligning the budget with the organization’s strategy
o Planning pitfalls
DAY 2:
· The Key Financial Statements
o The accounting system
o The income statement
o The balance sheet
o Retained earnings
o The cash flow statement
DAY 3:
· Budgeting: Process and Approaches
o The advantages of budgeting
o The budget process
o Rolling budgets
o Direct and indirect costs
o The master budget
o Operating and capital budgets
o Approaches to budgeting:
o Incremental budgeting
o Zero-based budgeting
o Flexible budgeting
o Kaizen budgeting and continuous improvement
o Activity-based budgeting
o Tools of forecasting
o Characteristics of an adequate budget
o Problems in budgeting
DAY 4:
Cost Control
o Budget as a control tool
o The control process
o Characteristics of an effective control system
o Responsibility reporting
o Variance analysis:
o Identifying the components of variance
o Taking the corrective action
DAY 5:
· Capital Expenditure Budgeting and Analysis
o Time value of money
o The discount rate: Using cost of capital
o Simple versus compound interest
o Identifying and analyzing cash flows
o Net Present Value (NPV)
o Internal Rate of Return (IRR)
o Profitability Index (PI)
o Pay-Back Period (PBP)
o Accounting Rate of Return (ARR)
o Approval for Expenditure (AFE)
o Sensitivity and risk analysis
· Cost Volume Profit Analysis (CVP)
o Defining fixed costs
o Defining variable costs
o Breakeven point in units
o Breakeven point in dollars
o Computing breakeven point in sales
o Sensitivity analysis: Changing assumptions