Course Objectives
Certificate in Advanced Budgeting and Forecasting - Virtual Learning
Course Objectives
By the end of the course, participants will be able to:
Evaluate the budgeting process in their organizations and recommend improvements
Create budget templates and models for their departments or organizations
Apply several forecasting techniques to better manage uncertainties in budgeting
Evaluate capital budgeting decisions using several methods and recommend proper action
Utilize Microsoft Excel functions and tools in the budgeting process including breakeven analysis and optimization
Target Audience
Finance directors, managers, controllers, accountants, budget analysts, budget owners and professionals who wish to expand their budgeting knowledge.
Target Competencies
Budgeting
Building models in Microsoft Excel
Forecasting
Evaluating proposals
Applying Microsoft Excel functions and tools
Assessing budgeting process
Note
This is a hands-on training course using laptops. Participants are required to use their own laptops equipped with Excel 2016 or higher for the duration of the training.
Course Outline
Budgeting and planningStrategy development frameworkThe three horizons of growth modelStrategic budgeting and resource allocationGrowth-share matrixNine-box matrixBudgets and the key financial statements
Budget cycle, process and approachesThe budget cycleCharacteristics of successful budgetingMaking the budget a value-adding activityTop ten problems with budgetingChoosing the proper budgeting approach:Incremental budgetingZero-based budgetingFlexible budgetingKaizen budgetingActivity based budgetingRolling (continuous) budgets and forecastsThe master budget and its componentsOperating and capital budgetsBest practices in budgetingCreating a user friendly budget template
Forecasting techniquesForecasting modelsQualitative and quantitative methodsSteps in developing forecasting modelsTime series and trend analysisData conditioning techniquesExponential smoothing and moving averagesSimple and multiple regression analysis
Modeling projected financial statementsMicro and macro factorsForecasting salesEstimating market demandEstimating company demandDeveloping sales forecastForecasting cost of salesForecasting operating expensesForecasting key assets and liabilities accountsModeling the income statement forecastModeling the balance sheet forecast
Advanced capital budgeting evaluation techniquesBusiness risk and cost of capitalClassifying investment projectsCash flow estimationAnalyzing investment and operating cash flowsThe time value of money conceptThe required rate of returnNet Present Value (NPV)Internal Rate of Return (IRR)Multiple internal rates of returnModified Internal Rate of Return (MIRR)Profitability Index (PI)Payback period and discounted payback periodCapital rationingComparing and evaluating techniquesSensitivity and risk analysis
Breakeven analysis and optimization techniquesCost Volume Profit (CVP) analysisUsing CVP to reach a target incomeSingle product and multiple products breakeven analysisWorking with budget constraintsBuilding optimization models