Budgeting Fundamentals

Budgeting Fundamentals

The Fundamentals of Budgeting course introduces key concepts in budgetary planning, budget implementation and management.  With insightful activities, it covers all aspects of managing budgets and financial plans including reporting, monitoring and financial performance review.

Following the training course, participants will be able to:

• Following completion of this course, you will be able to:
• Understand the link with Strategy
• Interpret and analyse a budget for its impact
• Appreciate the benefits and pitfalls of budgets
• Understand Budgets and the Budgeting Cycle
• Plan and implement a budget management approach
• Monitor and control finances
• Evaluate financial performance against budgets
• Understand and manage Budget games.

Who should attend

• Business Executives
• Operational managers
• Finance managers
• Project managers
• Line managers
• Accountants.

Planning and Budgeting

• Mission Statement
• Strategic Plans
• Operational Plans
• Business Plans
• Goals and Objectives

Continuous Improvement, Planning and Budgeting

• The budget cycle
• Benefits of integrating planning and budgeting
• Why Prepare Budgets?
• Benefits of budgets

Budgets and the Budgeting Cycle
Types of Budgets

• Zero-based budget
• Historical / Baseline budget
• Budget Environment – environments where budgets tend to be most successful

Key Budget Stakeholders
What Activity gets Budgeted
Financial information in a budget
Developing Accurate Budgets – well-informed estimates
Definitions

• Cost
• Cost driver
• Cost object
• Direct costs
• Indirect costs
• Fixed costs
• Variable costs

Understanding the costs in Your Organisation

• Fixed, Variable, Direct, Indirect

Budget Build-up
Capital Expenditure Budgets

• Why managers resist capital expenditure approval
• Why managers approve capital expenditure
• Avoiding budget hazards

Production Budgets
Sales Budgets
Operations Budgets
Overheads/Operating Expenses Budgets
Creating Master Budgets
Cash Flow Budget
Monitoring and Controlling Budget performance

• Budget Feedback

Analysis Options

• Variance analysis
• Ratio analysis
• Profitability ratios
• Liquidity ratios
• Efficiency ratios
• KPI analysis
• Break-even Analysis
• Break-even point

Effective communication of the budget

• Set accountabilities
• Financial delegation
• Setting clear objectives
• SMART objectives and targets

Monitoring performance against budget
Budget management and human behaviour

• Contingency Planning
• Cash Flow Strategy
• Increasing Production
• Seeking More Funding

Due Diligence and Risk Management
‘Budget games’ that can be played

• Spend before it gets taken away
• Year-end spend
• Overspend every year
• Build in a margin
• Local knowledge

Tips for better budgets.

Meet your MasterClass Director:

Jay Chander

Jay is a commercially focused Fellow Chartered Accountant, business consultant, advisor, executive trainer and author with extensive executive-level experience. Jay recently retired from being a Partner with Barker Henley in Sydney, Australia where he led an experienced team in risk advisory, internal audit, business consultancy and executive training practice. Understanding the complexities of today’s domestic and global businesses, Jay’s career involved providing a range of truly seamless strategic risk and business advisory services.

Prior to joining Barker Henley, Jay was a specialist Risk Partner with ‘Big 4’ firm, Deloitte, and held executive positions with major national and international companies. He has set up and managed commercially driven Internal Audit and Risk Management, Financial Management and Business Improvement functions in large multi-nationals. Jay has extensive experience in risk management, business improvement, finance management, audit, governance, investigations and project management for organisations in Australia, the UK, USA, Asia and North Africa. His expertise has ensured the successful implementation of business improvement initiatives focused on enhancing profitability, cost savings and cash flow.

Jay’s experience spans several industries including, but not limited to, government, education, banking and finance, manufacturing, retail, distribution, insurance, healthcare, publishing, transport and not-for-profits. His achievements enabled companies, both nationally and internationally, continual business improvement, enhanced KPI achievement and improved performance. Jay is an accredited trainer and has provided training for Chartered Accountants Australia and New Zealand, the Institute of Internal Auditors and the Australian Institute of Management. He is regularly invited to facilitate industry conferences in Australia and internationally on risk management, business and profit improvement and internal audit.

Qualifying as a Chartered Accountant with Ernst & Young in the UK, Jay is a member of the Institute of Chartered Accountants of Scotland, Fellow with Chartered Accountants Australia and New Zealand, member of the Australian Institute of Company Directors and the Institute of Internal Auditors – Australia. He holds a Bachelor of Accounting and Business Law from the University of Stirling, Scotland.

BMTG ACCREDITATION

• All Business Management Training Group (BMTG) Ltd training courses are accredited and approved by Qualifi, under the UK Regulatory Framework.
• The BMTG, portfolio of Learning Programmes, has been fully accredited by Qualifi, an official UK Government recognised awarding body.
• In addition, Qualifi has approved BMTG as an Accredited Centre which reinforces our commitment to assuring the highest recognised Quality Standards in delivering and assessing Programmes internationally. BMTG will continue to explore and evolve our accreditation framework to meet the demands of our Partners and delegates.

Visit www.bmtg.org to learn more about BMTG.

BMTG TRAINING STYLE

• BMTG employ best practice interactive training techniques.
• All of our Trainers are highly experienced practitioners who have operated successfully in the field and are with BMTG by reputation and invitation only. We have no ‘beginners’. All of our Trainers have themselves been trained in BMTG techniques and our style is common throughout our entire portfolio of courses.
• The BMTG technique involves classroom lecturing, highly intensive case study / role playing sessions, classroom interaction and feedback, one to one coaching from the Trainer, and a final examination.
• BMTG have found this to be one of the most effective training methodologies to date and many large multinationals and training companies have also taken up this approach.