Budgeting Essentials For Business Success

The success of a company is determined by its profitability and financial stability. In this case, planning ahead with sound annual budget is a key component.  

Budgeting is a financial plan that details out a company’s expectations for a period of time (normally a year) to be achieved and not as commonly mistaken to be a plan to spend money.

Budgeting is a serious undertaking, understanding and commitment to the process by management and staff are crucial to the process from formulation to oversight or control. 

This seminar intends to give the participants a working understanding of cost concepts, costing methodologies, and the entire budgeting process through the 4 stages in the budget cycle. Participants will then go through a process of building up the entire system of budgets from the Sales Budget all the way to the 2 Master Budgets.  

Learning Outcome:

• Learn the definition of a profitable and financial stable company
• Analyze the 3 financial statements using financial ratios to identify the strengths & weaknesses of a company
• Understand how cost concepts and costing methodologies influence the working of the budgeting process and their application
• Recognize the links between strategic planning, budget setting, and the financial outcomes
• Exposed to budgeting process through the framework and the 4 stages of the cycle, widely used methods
• Experiencing building up functional budgets and link them to the master budgets
• Understand variance analysis in the oversight of the budget
• Addressing the variances between ‘budget and actual’ for better control and co-ordination of the business

Who Should Attend:

•  Business owners and entrepreneurs
• Company directors
• Finance Managers and executives
• Accountants and Accounts Executives
• Business managers / executives from all departments
• Anyone who wishes to learn budgeting and control

Course Outline:

• Day 1
• [01] Understanding Business Success
• Value creation and profitability
• Financial stability and cash flow
• An overview of financial statements
• [02] Cost and Costing for Budgetary Purposes
• Cost Definitions, Concepts and Behaviors
• Cost Allocation, Apportionment and Absorption
• Marginal Costing vs Full Costing
• Activity Based Costing (ABC)
• Standard Costing
• [03] Budgeting Framework & Process
• Introduction to Planning & Budgeting
• Budgeting System and Pre-requisites
• Hierarchy of Budgets and Key Factors
• Day 2
• [04] Budgeting & Planning in Action
• Budget Planning
• Structure of Principal Budgets
• Construction of Key Budgets
• [05] Case Study / Project
• Budgeting exercise - From departmental budget to Master Budget
• [06] Budgetary Control and Variance Analysis
• Understanding Budgeting Control and Variance Concept
• Variance Analysis as a Management Tool
•  Variance Reporting