Certified Budget Analyst – Advanced Tools in Budgeting, Forecasting and Reporting
FACE 2 FACE
ON SITE TRAINING
This program has been designed to provide the participants with a broad view and understanding of financial budgeting for enterprises. A discussion of financial statements is a must when considering the creation or analysis of financial budgets. Also, an understanding of how costs behave and how they can be derived and allocated to the various aspects of the business units is also an important part of preparing budgets. We will be discussing various budgeting methods that have been used and are still in use today in various enterprises. We will also be discussing the methods we can use to assess whether a budget is appropriate and should be approved, and in some cases, whether a project should be undertaken at all. And finally, no discussion about budgets can be complete without assessing how well a company or sub-unit has actually performed in relation to their budget, and understanding why there are any differences, which there will usually always be.
Understanding of the key elements of financial statements.
Ability to prepare a complete master budget.
International Academy of Business and Financial Management
The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional association with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.
SESSION 1: Introduction to budgeting
What is a budget? The functions and roles of budgeting The budget manual Participative Budgeting Management by Objectives MBO The master budget
Activity: Each participant will be required to share with the group the various types of budgets they have prepared previously and how they used them in their circumstances.
SESSION 2: Understanding financial statements
The building blocks of financial statements: the accounting principles The accounting cycle The accounting equation
Activity: The participants will be required to identify from a list of transactions which types of accounts are affected and their impact on the relevant financial statements.
What is the purpose of each financial statement? A simple example of preparing a cash flow statement from the other financial statements What are the impacts of business decisions on the cash flows?
SESSION 3: Responsibility centres and forecasting revenues
What are the main types of responsibility centres? What methods can be used to forecast revenues? Where to obtain external information?
Activity: The participants will be required to forecast the revenues of a case study company using the methods discussed.
SESSION 4: How do costs behave?
The relationship between volume and costs Cost classification by nature and function The concept of cost drivers The high-low method for forecasting costs Other approaches for forecasting costs
SESSION 5: Commonly used methods for allocating costs to products, departments or services
Why are there more than one costing methods? Variable costing vs absorption costing Job costing vs process costing Standard costing Activity based costing (ABC)
Activity: The participants will first be required to discuss what, in their opinion, would be the most appropriate method of allocating costs under some given scenarios, and thereafter calculate the costs to be allocated using the methods we discussed.
SESSION 6: Using discounted cash flows (DCF) for analysis
What is a discounted cash flow (DCF)? The time value of money Discounting future cash flows Assessing the net present value (NPV)
SESSION 7: Project budgets
What is a project budget? What is the purpose of your project budget? Elements of a project budget Appropriate timescale for a project budget Using DCF methods to analyse a project’s feasibility
Activity: The participants will be required to prepare a budget in order to analyse a project’s feasibility, with the purpose of advising management as to the desirability of the project.
SESSION 8: Incremental vs zero-based budgets
What is an incremental budget?
SESSION 9: Continuous budgets/rolling forecasts
What is the purpose of a continuous budget or rolling forecast? Is this a practical approach? Practical application of a halfway method
SESSION 10: Static vs Flexible budgets
What is a static budget? How widespread is this type of budget? What is a flexible budget? Why would we need a flexible budget? Calculating the static and flexible budget values under standard costing
Activity: The participants will be required to prepare the static and flexible budgets for a case study company using standard costing.
SESSION 11: Introduction and preparing the operating budget
The components of the master budget The relationship between these elements Preparing the revenue or sales budget Preparing the purchases budget Preparing the operating expenses budget What would we still need to complete the budgeted income statement?
SESSION 12: Preparing the capital expenditure budget
What constitutes a capital expenditure budget? Which portion of the project budgets should be included? What non-current assets are relevant? Are current assets taken into account? Finalising the capital expenditure budget
SESSION 13: Preparing the financial budget
What is included in the financial budget? How do we derive the cash flows? Converting the other budgets into cash flows Preparing the cash budget Preparing the budgeted income statement Preparing the budgeted balance sheet Deriving the budgeted cash flow statement from the other budgeted statements
Activity: The participants will be required to finalise the financial budget for a case study company, based on the operating and capital expenditure budgets previously completed.
SESSION 14: The need for budget controls
Clarifying the purpose of the budget being assessed Does the budget align with the company’s objectives? How often should the budgeted results be assessed? Keeping track of actual results versus expected results Finalising and approving the budget
Activity: The participants will be required to review the budget of a case study company and discuss whether they think this budget is in accordance with the stated company’s objectives, and whether they would approve it or reject it. If they reject the budget, they should state what should be changed before they would accept it.
SESSION 15: Using financial ratios for analysing/ approving the budget
Types of financial ratios What are KPIs? Being consistent with the ratios’ definitions
SESSION 16: Creating performance reports
What are performance reports? What can those reports tell us? Preparing the performance report What is the difference between favourable and unfavourable variances?
SESSION 17: Variance Analysis
What is a variance analysis? Using the performance report for variance analysis Splitting the variances into volume, price and efficiency variances Preparing a variance analysis report
Activity: The participants will be required to prepare a variance analysis report based on the performance report they previously prepared, and splitting up the variances where possible into volume, price and efficiency variances.
Who Should Attend?
This highly practical and interactive course has been specifically designed for
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or email@example.com.
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.
IAMM Internal Audit Maturity Model
In recognition of their dedication and contribution supporting IKEA Saudi Arabia in arranging training programs during 2017 & 2018, looking forward for more development and exciting effort this year. On behalf of IKEA Saudi Arabia, THANK YOU!
Country Learning & Development Manager at IKEA Saudi Arabia
Certified Professional in Quality and Patient Safety
Dating back to 2014, Mobily’s “LEORON” experience has grown from a single collaboration to a long-term partnership. We consider ‘’LEORON” Institute as a strategic partner, whose contribution has been nothing but premium in equipping our staff with field-based knowledge and information. Past three years have resulted with an expanded collaboration with superior customer service and support. Best Regards,
Turki S. Alsahaan
Dir L&D, Talent Management at Mobily, Etihad Etisalat Company
Certified Professional in Quality and Patient Safety
Since the partnership was signed between BAE Systems Saudi Development & Training and LEORON in 2017, we have been working together to offer the Saudi market a complete portfolio of training solutions benefiting from the wide and extensive experience of both parties. Recognizing the great success of this partnership, we are looking for further collaborations in the future that will position both companies as one of the leading training providers in Saudi Arabia. We thank the LEORON team for their full cooperation and continuing support, and look forward to further success together in the years to come.
VP, Business Winning at BAE Systems Saudi Development & Training
Certified Professional in Quality and Patient Safety
We have been working with LEORON for the past two years and will be working with them again this upcoming year. The programs they delivered were fruitful and exciting and our organization has received positive feedback from the participants. What our organization aims to do is to provide at no cost training for all the private sector employees so that they may benefit from our offered programs in Innovation and Professional development. Leoron has helped us achieve this goal. We look forward to continuing this service and wish them the best of luck. Regards,
Nasser M. Al-Subaie
Sr. Program Officer, Enterprise Learning & Human Development at Kuwait Foundation for the Advancemen