About this Course

Financial planning and budgeting are critical to the success of a business entity – for-profit or otherwise.  Financial plans and budgets are an integral part of strategic planning that are indispensable in the deployment and effective allocation of resources to achieve the entity’s long- and short-term objectives.

Learning Outcomes:

Day 1 of this workshop provides you with an understanding of the strategic planning process.  It highlights the coordinated, complementary and contributory roles of both budget approvers and holders towards effective corporate planning and control.  This workshop also provides you with insight on how business plans are devised and how actual performance is analysed against budget.  The relevance and importance of the Cash Flow Forecast and its impact on Cash Flow Management will be explained.

Day 2 illustrates and explains the sequential preparation of the operating budgets leading to preparation of the Cash Budget and Budgeted Financial Statements.  The day, and hence the workshop, ends with completing the strategic planning process by equipping you with capital budgeting technics based on discounted cash flows (DCFs) which are essential decision-making tools to achieve both short- and long-range corporate objectives of all organisations.

Course Outline:

Budgeting and Long-range Planning

• Corporate Planning and Control Framework
  
• Strategic Planning Process
  

          - PEST (Political, Economical, Social-cultural, Technological)

          - BCG (Boston Consultancy Group Matrix)

          - VCA (Value Chain Analysis)

• How strategic Plans are Translated into Financial Plans and Budgets
  

Budgeting at Corporate Level

• Corporate Budgeting Process
  
• Quantifying Corporate Objectives
  
• Why Prepare Budgets?
  
• Interdependency of Budgets – Master Budget
  
• Limiting Factors
  
• Types of Budgets – Uses, Merits and Drawbacks
  
• Comparing Actual Performance with Budget
  
• Variance Analysis
  

Budgeting at Department or Team Level

• Department Budgeting Process
  
• Why Budgets Get Turned Down
  
• Building Assumptions
  
• Budget Worksheet
  
• Laying the Groundwork for Budgeting
  
• Essentials of Effective Budgeting
  

Impact on Cash Flow Management

• Why Hold Cash?
  
• How Much Cash to Hold?
  
• Relevance of Cash Flow Forecast in Cash Flow Management
  

Preparing Budgets

• Operating Budgets
  
• Cash Budget
  
• Budgeted Financial Statements
  

Capital Budgeting

• Characteristics of Investment Appraisal Projects
  
• Time Value of Money
  
• Discounted Cash Flows
  
• Capital Budgeting Techniques – Types, Merits and Drawbacks
  

          - Net Present Value

          - Internal Rate of Return

          - Payback Period

Who Will Benefit?

This financial training course will benefit members of budget committees, budget approvers and holders, heads of business units and departments, financial controllers and managers.

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