Financial Planning and Analysis: controlling and setting budgets Course

Accounting, Finance and Budgeting Training

Select Other "city & date"

Financial Planning and Analysis: controlling and setting budgets Course

Course Overview:

The Financial Planning and Analysis 3: Controlling and Setting Budgets course is aimed at providing specialists with high competences in financial analysis and budget preparation aimed at strategic management and performance enhancement. Participants will become skilled in the processes of financial modeling; costing and budgeting and learn how to use these processes to improve value and risk management respectively.

Emphasis is placed on key areas such as development of financial plans, analysis of variances, the preparation of budgets, cost estimates as well as investment decisions highlighting how financial policies interrelate with business performance and creation of value.

Other facets understudied in the course include cost drivers of budgetary control and budget systems to include the balance scorecard as an example of performance integration. This course aims at those in finance who wish to enhance and strengthen the budgeting and financial planning frame to the organisation.

This course work will also assist the participants and advice on how business processes can be improved as well as how further enhance performance of the organisation.

Course Objectives:

At the end of this Financial Planning and Analysis: controlling and setting budgets, you will be able to:

Undertake financial analysis training in order to apply financial models and analytical tools
acquire the knowledge about budgeting and costing terminologies used in businesses
Acknowledge strategic budgeting and planning
Acknowledge the significance of a well-defined budgeting and costing process
Acknowledge the cost behavior more efficiently and accurately
Acquire the knowledge to build a performance measurement system at a comprehensive level
Associate operations and finance for strategy execution and budgeting purposes
Provide recommendations to support strategic initiatives such as productivity increases, risk mitigation, and the optimization of profitability
Analyze and report on the financial implications of various operational decisions and recommend a course of action
Create and drive business intelligence and planning improvements within an organization
Identify business performance reporting challenges and priorities
Develop and monitor specific performance indicators, reporting on trends and identifying causes of unexpected variance
Conduct financial modeling, analysis, and valuation exercises to support new product development and other ad hoc initiatives

Prepare and present reports to senior management with confidence

Who Should Attend?

Financial Planning and Analysis: controlling and setting budgets, is ideal for:

Those who have worked in finance for some years, and are looking to acquire the specific skills needed to secure a new role or improve their career prospects.
Business professionals who are willing to understand the financial aspects of the strategic decision-making process.

Course Outlines:

Introduction to Financial Analysis, Planning and Control

Financial Economic Decision-Making: The challenge
Financial/economic analysis practice
Understanding the value-creating company
Shareholder and corporate value
Business: A dynamic perspective
Corporate governance and the agency problem
Description: What information and data to use?
Financial statements: Nature
Financial analysis and decision-making: Context

Business Performance: Performance
Business performance and ratio analysis
Understanding Management’s point of view
Description: Owners’ point of view
Description: Lenders’ point of view
Pyramids of ratios: Ratio as a system
Financial performance analysis: Integration
Introduction to Economic Value Added (EVA)
Financial distress: Prediction

Financial Requirements: Projection

Financial projections: Inter-relationship
The overview of Operating budgets
Variance analysis and standard costing
Cash budgets and cash forecasts
Understanding Sensitivity analysis
Growth and dynamics of the business system
Description: Operating leverage
Analyzing Financial Growth Plans
Overview of Financial Modeling

Investment Decisions: Analysis
Time-adjusted measures: Application
Internal rate of return (IRR) and net present value (NPV)
Understanding the Strategic perspective
NPV and EVA
Investment analysis: Refinements
Introduction: Equivalent annual cost (EAC)
Introduction: Modified internal rate of return (MIRR)
Understanding Sensitivity analysis, scenario analysis, simulation, and NPV break-even
The concept of Dealing with risk and changing circumstances

Business Performance and valuation

The concept of Managing for shareholder value
Description: Shareholder value creation in perspective
Value-based methodologies: Evolution
The concept of Creating value in restructuring and combinations
Understanding Financial strategy in acquisitions
An overview: Business valuation
Description: Business reorganizations and restructuring
Overview of Management buy-ins (MBIs) and Management buyouts (MBOs)

Overview of Setting and Controlling Budgets
Introduction to Financial and Strategic Planning
Introduction and overview of management accounting and Financial accounting
Association between budget setting, strategic planning, and performance measurement
Introduction to strategic and planning management
Overview of Mission, vision, and objectives
Description of the planning process
Overview of External environment analysis, internal resources analysis, PESTEL, and SWOT
Shareholder wealth maximization, financial strategy, and value creation
Understanding Long-term and short-term financing, financial planning, and modeling

Budgeting: Cost Analysis

Costing: Definition
Fixed costs and variable costs: Cost behavior
Understanding cost/volume/profit (CVP) analysis, contribution and break-even models
Overview: Non-traceable and traceable cost allocation
The concept of period costs and product costs
Understanding absorption costing, marginal costing, direct costs, and indirect costs
Analysis of Product costing for budgetary control, performance measurement, and budget setting
The costing system and activity-based costing (ABC): Refinement

Budgeting: Framework
Budget: Definition
Distinct Types of budgets and Budgeting framework
Understanding the budget process
Forecasting sales, costs, and sales pricing: Qualitative and Quantitative techniques
Labor costs and depreciation: Budgeting
Description: The departmental budget
Master budget and the cash forecast/budget: Preparation
Budgeting: The human side and the behavioral aspects

Understanding Capital Budgeting, Activity-based budgeting (ABB), Variance analysis, and Budgetary control
Budget controlling process in your organization
Introduction to Activity-based budgeting (ABB)
Capital projects budgeting
Understanding Discounted cash flow (DCF) investment appraisal methods of internal rate of return and net present value (NPV)

Overview of the profitability index (PI) and capital rationing

Responsibility accounting and budgetary control systems
Budgeting and budgetary control: The standard costing
The concept of flexed budgets, fixed budgets, variance analysis, and the reasons for variances

Broadening Performance Measurement Systems: Beyond Budgeting
Integrating continuous improvement into the budget process
Budgeting: Advantages and disadvantages
Ways to improve the budget process in your organization
Understanding the conflict between the costing system and performance improvement
Description: Performance improvement and lean thinking
Beyond the budget: What’s next?
Associating strategy with performance measurement and budgeting: The balanced scorecard
Adapting and developing the balanced scorecard
Summary