Introduction

Budget control and Budgetary Execution training is essential for organizations and assists them in the decision-making and planning process. This training course provides participants with important cost awareness and budgetary skills by combining techniques analysis, problems, and examples of real case studies, which is essential in managing and controlling processes/projects in times of increasing global competition where the budgets are inextricably linked with both strategy formulation, cost control, and execution.

Budget control and Budgetary Execution are crucial for contemporary organizations. In a modern competitive world, companies want to stay competitive; they are urged to think in terms of process value added to customers/shareholders. Along this line, budgeting, as well as tracking, controlling & reducing costs, represent essential activities that should be monitored efficiently by organizations as they implement their key processes, activities, and operations.

In addressing these issues, this Global Horizon training course on Budget control and Budgetary Execution is relevant for those professionals & analysts facing the difficult challenge of improving performance while reducing the costs in the execution of those processes for which they are accountable.

This training course will feature:

• Identifying the role of budgeting within the organization’s management system

• Developing a proper system of cost analysis for budgeting purposes 

• Mastering the budgeting and financial skills required for better decision-making

• Linking strategy to operational plans

• Learning new best practices to manage organizational performance

• Integrating organizational drivers with strategic objectives

• Understanding of the interrelationship between financial and pre-financial drivers

Training Objectives

Participants attending this training course will:

• Successfully build integrated planning, budgeting, and reporting process

• Understand costs behavior more accurately

• Deliver more timely and useful information to decision-makers

• Understand capital budgeting

• Identify & manage key financial indicators for the business

• Be able to use specific cost analysis and performance measurement techniques

• Be prepared to understand and implement the Balanced Scorecards

• Be prepared 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

• Select the performance measurement systems that work

• Think proactively beyond budgeting

Training Methodologies

This Budget control and Budgetary Execution training course combine theory and practice. Therefore, besides lectures based on PowerPoint presentations, discussions, and exercises, we use company examples to illustrate how the techniques presented have been applied in real case studies.

Organizational Impact

Participants in this training course will provide benefits for their organization from the skill set and enhanced knowledge that they will take back to the workplace:

• Thinking strategically to improve their understanding of the annual budget-setting process and its links with the organization's longer-term plans

• Choosing the appropriate approach to costing for more accurate controlling, planning, budgeting, and execution to enhance the actual performance

• Improved forecasting and budgeting resulting in more efficient use of resources and value-adding opportunities

• Applying effective budgetary control using flexed budgets and variance analysis, the balanced scorecard, and identifying ways the organization's budget process may be improved

• Communicating more effectively with other professionals and sharing knowledge gained from the course throughout the organisation

Personal Impact

Participants in this training course will significantly enhance their understanding of the links between controlling the budget setting processes and develop their application of budgeting and budgetary execution best practices through:

• Developing their ability to think strategically and prepare successful financial plans and budgets consistent with the organization's requirements

• Comparing fixed and variable costs, direct and indirect costs, and the use of contribution accounting and Cost/Volume/Profit (CVP) analysis

• Applying traditional and Activity-Based Costing (ABC) methods and allocation of overhead costs for planning, budget setting, and budgetary control

• Using the appropriate techniques of forecasting sales and costs, sales pricing, and preparation of departmental budgets, the master budget, and cash budget

• The use of standard costing in budgetary control using flexed budgets and variance analysis, the balanced scorecard, and evaluating ways of improving the organizational budget process

Target Audience

• Those in charge of designing and managing a budgetary system

• 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 Professionals, R&D Professionals, Sales / Marketing Professionals, General Accounting Professionals, Business Unit Professionals

• Anyone who wants to understand the basics of budgeting, costing, and performance measurement

Course Outlines

DAY 1

Budgeting & Cost Control in the Management System: Link with Strategic Planning

• Budgeting and the Management System of Contemporary Organizations

• Strategic Planning, Budgeting and Management Control

• Strategic Management Accounting – Setting Goal and Objectives

• From Strategic to Operating Plans – Actions and Initiatives

• Measuring and Managing the Performance – KPIs and targets

• Managerial Accountability  

DAY 2

Budgeting: Principles and Key Concepts

• Understanding the Context for Budgeting

• The Benefit of Budgeting and its Role for Achieving Organizational Targets

• The Shortcomings of the Budgeting Process - How to improve them?

• Principles of Budgeting

• Main Issues with Budget Preparation

• Capex (Capital Expenditures) vs. Opex (Operational Expenditures)

DAY 3

Cost Analysis for Budgetary Purposes

• Cost Concepts and Terminology

• Different Costs for Different Purposes

• Fixed vs. Variable Costs: The Cost-Volume-Profit Analysis Model

• Contribution Margin Analysis

• Manufacturing vs. Non-manufacturing Costs

• Period vs. Product Costs

DAY 4

Traditional vs. Advanced Techniques in Cost-Control

• Under-costing and Over-costing: Understand Allocation Methods

• How to refine a Costing System?

• Indirect (OH) vs. Direct Costs

• Traditional Cost Allocations Systems vs. Activity-Based Costing (ABC)

• Cost Hierarchy & Cost Drivers - Linking Resources, Activities and Management

• Introducing Activity-Based Budgeting (ABB) and Management (ABM)

DAY 5

New Integrated Performance Measurement Systems

• Beyond Budgeting: Integrating Financial and Pre-financial Information

• The Drivers of Value Creation

• The Balanced Scorecard

• Strategy Maps

• Integrated Reporting

Executing the Budget

• Commitments and Obligations

• Common Obligation Concepts

• Contracts for an Indefinite Quantity

• Types of Services Being Purchased

• Unliquidated Obligations

• Life Cycle of an Appropriation

• Revolving Funds and Reimbursables

• Deobligations

• Other Resources

• Agency-Level Modification Tools

• Reporting of Resources