Advanced Budgeting Workshop

Budgeting and planning

• The budget and the functions of management

• Budget as a planning tool

• Budgets and the key financial statements

• The top-down versus bottom-up process

Budget cycle, process and approaches

• The budget cycle

• Characteristics of successful budgeting

• Making the budget a value-adding activity

• Top ten problems with budgeting

• Choosing the proper budgeting approach:

  • Incremental budgeting

  • Zero-based budgeting

  • Flexible budgeting

  • Kaizen budgeting

  • Activity based budgeting

  • Rolling (continuous) budgets and forecasts

• The master budget and its components

• Operating and capital budgets

• Best practices in budgeting

• Creating a user friendly budget template

Forecasting techniques

• Forecasting models

• Qualitative and quantitative methods

• Steps in developing forecasting models

• Time series and trend analysis

• Data conditioning techniques

• Exponential smoothing and moving averages

• Simple and multiple regression analysis

Advanced capital budgeting evaluation techniques

• Business risk and cost of capital

• Classifying investment projects

• Cash flow estimation

• Analyzing investment and operating cash flows

• The time value of money concept

• The required rate of return

• Net Present Value (NPV)

• Internal Rate of Return (IRR)

• Multiple internal rates of return

• Modified Internal Rate of Return (MIRR)

• Profitability Index (PI)

• Payback period and discounted payback period

• Capital rationing

• Comparing and evaluating techniques

• Sensitivity and risk analysis

Breakeven analysis and optimization techniques

• Cost Volume Profit (CVP) analysis

• Using CVP to reach a target income

• Single product and multiple products breakeven analysis

• Working with budget constraints

• Building optimization models