The Essentials of Budgeting & Business Finance

DAY 1

Strategy & Budgeting: Creating a “Business Finance” Culture

• The difference between managerial accounting and financial accounting

• The key financial statements

  • Income statement

  • Balance sheet

  • Cash flow forecast

• The complexity of managing a contemporary organization

• Strategic Plan, Budgeting, Costing and Management Control

• Management Accounting for organizational control systems

• Responsibility accounting and the process-view

• The Budget and its role for achieving organizational targets

• What is it the situation in your organization

• Problems and Examples - Case study illustration

DAY 2

Issues of Budgeting

• The Budget and its role for achieving organizational targets

• The limits of the budget

• The Master budget and its schedules

• The motivational aspects of budgeting

• The linkages between budgeting and costing

• Cost classifications

• Problems and Examples - Case study illustration

DAY 3

Costing for Budgeting Purposes

• Cost terms and methodologies

• Inventorial vs. period costs

• Manufacturing vs. non-manufacturing costs

• Variable vs. Fixed costs (CVP analysis)

• Direct vs. indirect cost

• Under-costing and Over-costing problems

• Problems and Examples - Case study illustration

DAY 4

Flexible Budgets & Variance Analysis

• The budgets and performance measurement as tools for communications

• What is the situation in your organization? How to improve it?

• The imperative of value-creation: towards value-based budgeting

• Describe the difference between a static budget and a flexible budget

• Compute flexible-budget variances and sales-volume variances

• Integrate continuous improvement into variance analysis

• Cases, problems and exercises

DAY 5

Balanced Scorecards: Tools To Bring Finance In The Business

• Bridging Finance in the Business by making the strategy visible

• The balanced scorecard and its four perspective

• Implementing the balanced scorecard

• Setting Objectives and KPIs

• Developing Strategy Maps

• Develop a Balanced Scorecard for your organization

• Exercises and Case study