Setting & Controlling Budgets

This day introduces the links between strategic planning, budgeting, and performance measurement. Participants explore planning processes, mission and objectives, internal and external analyses, and financial planning fundamentals. The topics covered will include:

• Financial Accounting and Management Accounting
• The Links between Strategic Planning, Budget Setting, and Performance Measurement
• Planning and Strategic Management
• Mission, Vision, and Objectives
• The Planning Process
• External Environment Analysis, Internal Resources Analysis, SWOT and PESTEL
• Shareholder Wealth Maximisation, value Creation and Financial Strategy
• Financial Planning and Modelling, and Long-term and Short-term Financing

This day focuses on cost concepts and behaviours that underpin budgeting decisions. Participants examine contribution analysis, cost allocation methods, and how cost structures influence budget planning and measurement. The topics covered will include:

• What is Costing?
• Cost Behaviour – fixed costs and variable costs
• Contribution, Cost / Volume / Profit (CVP) Analysis and break-even models
• Traceable Costs and Non-traceable Cost Allocation
• Product Costs and Period Costs – product costing for inventory valuation and profit ascertainment
• Direct costs, Indirect costs, Absorption Costing and Marginal costing
• Product Costing for Budget Setting, Budgetary Control and Performance Measurement
• Refinement of the Costing System and Activity-Based Costing (ABC)

This day examines the budgeting framework, types of budgets, forecast techniques, and the human aspects of budgeting. Participants explore forecasting tools, departmental budgets, and master budget preparation. The topics covered will include:

• What is a Budget – and Why Budget?
• The Budgeting Framework and the various Types of Budgets: top down, bottom up, incremental, zero-based, activity-based
• The Budget Process
• Qualitative and Quantitative Techniques of Forecasting Sales and Costs, and Sales Pricing
• Budgeting for Labour Costs and Depreciation
• The Departmental Budget
• Preparation of the Master Budget and the Cash Forecast / Budget
• The Human Side and the Behavioural Aspects of Budgeting

This day explores advanced budgeting techniques, capital budgeting methods, and systems for budgetary control and variance analysis. Participants examine responsibility accounting and standard costing. The topics covered will include:   

• How the Budget is controlled in your Organisation
• Activity-Based Budgeting (ABB)
• Budgeting for Capital Projects
• Discounted Cash Flow (DCF) investment appraisal methods of Net Present Value (NPV) and Internal Rate of Return
• Capital Rationing and the Profitability Index (PI)
• Budgetary Control Systems and Responsibility Accounting
• Standard Costing for Budgeting and Budgetary Control
• Fixed Budgets, Flexed Budgets, Variance Analysis and the Reasons for Variances

This day focuses on continuous improvement, budget process enhancement, and performance measurement beyond traditional budgeting. Participants explore lean thinking and balanced scorecards. The topics covered will include:   

• Integrating Continuous Improvement into the Budget Process
• Advantages and Disadvantages of Budgeting
• How to Improve the Budget Process in Your Organisation
• The Conflict between Performance Improvement and the Costing System
• Lean Thinking and Performance Improvement
• What next – beyond the Budget?
• The Balanced Scorecard – linking strategy with budgeting and with performance measurement
• Developing and Adapting the Balanced Scorecard: Financial Perspective, Customer Perspective, Internal Business Process Perspective, Learning and Growth Perspective