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
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
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.
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
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
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
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