All organisations need to manage performance so that their financial and strategic objectives are achieved and management and financial stakeholders can be confident in the associated control processes. The proper construction and control of budgets is central to this, to safeguard the organisation’s viability and the effective delivery of its objectives. This requires a comprehensive financial planning and approval framework; consistent and rigorous processes for constructing budgets, both capital and revenue; sound methodologies for assessing the financial impact of proposed expenditure; compatibility with other management and performance data, and a control system that sets clear responsibilities and produces prompt and accurate monitoring information on performance against budgets.
The Strategic Planning Process and the Budget as a Plan
Aligning the Budget with the Organization’s Strategy
The Critical Functions of Management
Is Control the Missing Link?
Role of cost management in the business strategy
Cost management and motivation
Embedding cost control in the business
Role of Finance in cost control
Forecasting Methods
Break-Even Analysis
Use of Standards
Trend Analysis and Cost Estimation
Role of forecasts and the link to strategy
Comparing and contrasting budgets and forecasts
Identifying key business drivers
The rolling forecast process
Forecasting methods
The different types of reports and their use
Developing quality commentary
Structuring the monthly management meeting to best use the new information
Reporting software
Project Planning
Direct and Indirect Project Costs
Time Value of Money
Investment Appraisal techniques - Pay-Back Period (PBP) ;Net Present Value (NPV) ;Internal Rate of Return (IRR) ;Profitability Index (PI) ;Accounting Rate of Return (ARR)
Approval for Expenditure (AFE)
Sensitivity and Risk Analysis
Budget as a Control Tool
Approaches to Cost Control
Understanding the Need for Timeliness and Precision
Variance Analysis
Problems in Budgeting
Understanding of the basics of budgeting and forecasting
Appreciate the need for developing accurate budgets and forecasts.
Contributing effectively to Strategic Planning
Link budgeting and forecasting into the business' strategy
Prepare rolling forecasts
Guide operational management in the effective use of budget and forecast data
Implement costs cutting initiatives and improve effectiveness
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