Introduction

The Seminar focuses on the internal view of an organization: strategic decision making, budgeting and cost control. The program will increase your understanding of the overall budgeting process and how it fits into the strategic objectives of your organization.

It is important that all professionals in every department understand the budget its linkage to the strategic objectives of the business and appreciate that it is a vital component of managing organizations. The budgeting process helps to create a culture of performance measurement and spread it throughout the organization in order to help the business meet its objectives.

• Setting performance indicators

• Achieving control over costs

• Maintaining good cash flow

• Making correct capital project decisions.

• Motivating staff

Objectives

• Understand the importance of linking finance with the business

• Understand the purpose of budgets and their impact on the organization.

• Appreciate the place of the budget in strategic planning

• Understand the motivational effects of budgets

• Understand how budgets are used both for planning and for control

• Understand how budgets can be used for responsibility accounting

Target Audience

• Finance Managers and Budget Controllers
• Management Accountants and Cost Accountants
• Department Heads and Line Managers (non-financial backgrounds)
• Project Managers and Operations Managers
• Team Leaders and Supervisors
• HR, Sales, and Administrative Managers involved in budgeting
• Professionals responsible for cost control and performance management
• Internal auditors and business performance analysts
• Executives involved in strategic planning and decision-making
• Professionals seeking to understand budgeting, control systems, and KPIs
• Individuals aiming to build a performance-driven management culture within organizations

Outlines

DAY 1

Strategy & Budgeting: Creating a “Business Finance” Culture

• The difference between managerial accounting and financial accounting

• The key financial statements

  • Income statement

  • Balance sheet

  • Cash flow forecast

• The complexity of managing a contemporary organization

• Strategic Plan, Budgeting, Costing and Management Control

• Management Accounting for organizational control systems

• Responsibility accounting and the process-view

• The Budget and its role for achieving organizational targets

• What is it the situation in your organization

• Problems and Examples - Case study illustration

DAY 2

Issues of Budgeting

• The Budget and its role for achieving organizational targets

• The limits of the budget

• The Master budget and its schedules

• The motivational aspects of budgeting

• The linkages between budgeting and costing

• Cost classifications

• Problems and Examples - Case study illustration

DAY 3

Costing for Budgeting Purposes

• Cost terms and methodologies

• Inventorial vs. period costs

• Manufacturing vs. non-manufacturing costs

• Variable vs. Fixed costs (CVP analysis)

• Direct vs. indirect cost

• Under-costing and Over-costing problems

• Problems and Examples - Case study illustration

DAY 4

Flexible Budgets & Variance Analysis

• The budgets and performance measurement as tools for communications

• What is the situation in your organization? How to improve it?

• The imperative of value-creation: towards value-based budgeting

• Describe the difference between a static budget and a flexible budget

• Compute flexible-budget variances and sales-volume variances

• Integrate continuous improvement into variance analysis

• Cases, problems and exercises

DAY 5

Balanced Scorecards: Tools To Bring Finance In The Business

• Bridging Finance in the Business by making the strategy visible

• The balanced scorecard and its four perspective

• Implementing the balanced scorecard

• Setting Objectives and KPIs

• Developing Strategy Maps

• Develop a Balanced Scorecard for your organization

• Exercises and Case study