Budgeting, Forecasting, and Planning Process

Introduction:

A good plan should start with a good forecast, which in turn can lead to a good budget. The strategy is a long-term plan of what the company will do to achieve its policy. A budget is a short-term plan for how the strategies will be achieved. It is an estimate of the activities that the company has to develop to achieve its short-term plans.

Targeted Groups:

• Financial accounting team members.
• Cost accounting and management personnel.
• Finance professionals.
• Planning managers.
• Members of the Capital Investments and Projects team.

Course Objectives:
At the end of this course, the participants will be able to:

• Understand the planning and budgeting process and apply it in an effective manner.
• Predict cash flows accurately and use statistical tools for analysis and forecasting.
• Calculating the cost of capital and applying financial models to evaluate investments.
• Use scenario analysis to plan for various circumstances.
• Analyze financial data in an effective way and apply advanced Excel.
• Create and monitor an effective budget using Budget Control.
• Understand cost systems and their application to various activities.
• Optimize cost systems using activity-based costing.
• Design an ABC system and understand its advantages and disadvantages.
• Performance evaluation using the Balanced Scorecard.

Targeted Competencies:

• Planning for success.
• prediction process.
• budget process.
• Balancing control.
• Anticipate expenses.
• Activity-Based Business Costing (ABC).
• Activity-Based Budgeting (ABB).

Course Content:
Unit 1: Planning for Success:

• What are planning strategies?
• Work with cycle planning
• the message
• Strategic analysis
• The strategic choice
• Strategic execution
• Corporate goals
• Corporate value and shareholder value
• The problem of agency and corporate governance
• Planning and working capital requirements
• Abstract outline
• Financial planning for growth
• Make a financial model
• Develop key performance indicators (KPIs)
• Balanced card

Unit 2: the forecasting process:

• Determine the purpose and objective of the forecast
• data analysis
• Statistical analysis tools
• Quantitative analysis and forecasting
• forecasting techniques
• Univariate analysis models: time series; moving averages; housing smoothing; trend development
• Causal Analysis Models - Regression Analysis

Unit 3: The Budget Process:

• Why do we do balancing? Budget objectives
• Planning and Control
• Create a budget for sales and costs
• Stages of the budget process
• Budget preparation process
• Monitor the number of workers and labor costs in the budget form
• Considering depreciation in the budget form
• Complete budgeting

Unit 4: Balancing Control:

• Standard cost
• standard cost targets
• Flexible budgets
• Analyze differences
• Reasons for differences
• Plan and run variations

Unit 5: Expense Forecasting - Activity-Based Costing (ABC) and Activity-Based Budgeting (ABB):

• Activities that cause costs
• Operations and activities
• Under- and over-cost - the exchange of costs between products
• Activity Based Costing (ABC)
• Optimize the cost system
• ABC and cost management
• ABC systems design
• Cost hierarchy and price factors
• Advantages and disadvantages of ABC systems
• From traditional budgeting to activity-based budgeting (ABB)
• ABB process
• Incentives and the behavioral aspect of budgeting.