Why Attend:

Planning and budgeting are must-have skills for all professionals regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device and a control mechanism. In addition, it provides the necessary application tools required to making long-term and short-term planning decisions.

Course Objectives

By the end of the course, participants will be able to:

·         Defend the importance of linking an organization's budget with its strategic plan

·         Demonstrate how the budget relates to the key financial statements: balance sheet, income statement, and cash flow

·         Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used

·         Apply cost control tools, analyze management variance reports and take proper corrective action

·         Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal

·         Utilize cost-volume-profit analysis in making budgeting decisions

Course Outline:  (Themes, Concepts, Issues and Skills):

Introduction to the treasury function

·         The critical functions of management

·         Aligning the budget with the strategy of the organization

·         Road map to strategy

·         Budget as a planning tool

·         Control: the missing link

·         Planning pitfalls

The key financial statements

·         The accounting system

·         The income statement

·         The balance sheet

·         The cash flow statement

Budgeting: process and approaches

·         The advantages of budgeting

·         The budget process

·         Rolling budgets

·         The master budget

·         Operating and capital budgets

·         The budgeted financial statements

·         Approaches to budgeting:

·         Incremental budgeting

·         Zero based budgeting

·         Flexible budgeting

·         Kaizen budgeting and continuous improvement

·         Activity based budgeting

·         Tools of forecasting

·         Direct and indirect costs

·         Characteristics of an effective budget

·         Problems in budgeting

Fixed income securities and bonds’ valuations

·         Cost control

·         Budget as a control tool

·         The control process

·         Characteristics of an effective control system

·         Responsibility reporting

·         Variance analysis: identifying the components of variance

·         Variance analysis: taking the corrective action

Capital expenditure budgeting and analysis

·         Time value of money

·         Simple versus compound interest

·         Identifying and analyzing cash flows

·         The discount rate: using cost of capital

·         Net Present Value (NPV)

·         Internal Rate of Return (IRR)

·         Profitability Index (PI)

·         Pay-Back Period (PBP)

·         Accounting Rate of Return (ARR)

·         Approval for Expenditure (AFE)