Setting & Controlling Budgets

Introduction

Setting budgets is all about how to plan for the expected and the unexpected. 

Controlling budgets is all about how to react and respond appropriately when the unexpected happens.

This GLOMACS Setting & Controlling Budgets training course deals comprehensively with the questions you have always wanted to ask about planning, budget setting, and budgetary control, in plain language that is easy to understand. It covers in detail how the tools and techniques of successful budgeting and budgetary control are applied within the overall planning framework to ensure that organisational goals are met.

It clarifies the jargon and methodology, and the links between strategy, budgeting, costing, and performance measurement. The Instructor's own business career experiences and many other real-world business scenarios are shared throughout this stimulating course to illustrate and reinforce the practical application of the tools and techniques and best practices.

This GLOMACS training course will highlight:

• Strategic planning, budget setting, performance measurement, and shareholder wealth maximisation
• Full costing, marginal costing, and activity based costing (ABC)
• Operating budgets, cash budgets, capital budgets, and master budgets
• Fixed budgets, flexed budgets, and variance analysis
• Continuous performance improvement, and the balanced scorecard

Objectives

By the end of this GLOMACS training seminar, participants will have learned how to:

• Identify the links between strategic planning, budget setting, and performance measurement
• Use alternative approaches to costing for planning, budgeting and budgetary control
• Set an operating budget, cash budget, capital budget, and prepare a master budget
• Develop budgetary control systems, and analyse variances using flexed budgets
• Integrate continuous performance improvement into the budget process and link budgets and KPIs with strategy using the balanced scorecard

Training Methodology

Individuals with varied experience and knowledge are encouraged to share their own experience and consider alternative approaches introduced during the training seminar. Formal presentations will be supported by numerous worked examples, the use of real-world scenarios and group discussion. In this supportive and interactive workshop environment, your Instructor will facilitate team case studies and exercises that will reinforce the hands-on application of each of the learning points and topics covered.

Difficult mathematical concepts are minimised wherever possible and handled in a visual and user-friendly way – our aim is for this to be an enjoyable learning experience.

Organisational Impact

Participants in this GLOMACS training seminar will provide benefits for their organisation from the skill set and enhanced knowledge that they will take back to the workplace:

• Thinking strategically to enhance their understanding of the annual budget setting process and its links with the organisation's longer-term plans and financing requirements
• Choosing the most appropriate approach to costing for more accurate planning and budgeting, better budgetary control, and improved actual performance
• Improved forecasting and budgeting resulting in more efficient use of resources and exploitation of value-adding opportunities
• Evaluating the financial consequences of budgeting for alternative new capital investment projects using Discounted Cash Flow (DCF) to optimise organisational value creation
• Applying effective budgetary control using flexed budgets and variance analysis, the balanced scorecard, and identifying ways the organisation's budget process may be improved
• Communicating more effectively with other professionals and sharing knowledge gained from the seminar throughout the organisation

Personal Impact

Participants in this GLOMACS Setting & Controlling Budgets training seminar will greatly improve their understanding of the links between the strategic planning and budget setting processes, and develop their application of budgeting and budgetary control best practice through:

• Developing their ability to think strategically and prepare successful financial plans and budgets and determine the financing requirements of the organisation
• Comparing fixed and variable costs, direct and indirect costs, and the use of contribution accounting and Cost / Volume / Profit (CVP) analysis
• Applying traditional and Activity-Based Costing (ABC) methods and allocation of overhead costs for planning, budget setting and budgetary control
• Using the appropriate techniques of forecasting sales and costs, and sales pricing, and preparation of departmental budgets, the master budget, and cash budget
• Capital budgeting using the Discounted Cash Flow (DCF) techniques of Net Present Value (NPV), Internal Rate of Return (IRR), and the Profitability Index (PI)
• The use of standard costing in budgetary control using flexed budgets and variance analysis, the balanced scorecard, and evaluating ways of improving the organisational budget process