This course gives delegates the skills to manage departmental budgets, monitor divisional costs and apportion department expenses on an appropriate basis.
Suitable for budget holders, cost centre managers, and those who manage department or event budgets who wish to acquire first principles or refresh ideas and approaches.
Delegates will learn how to:
By the end of this course you will be able to:
• Review the benefits and drawbacks of different budgeting methods, and when to use each approach.
• Use a structured approach to prepare a budget.
• Understand how costs behave to help with budgeting for expenditure.
• Understand management accounting methods, and which methods we use for budgeting and for evaluating unbudgeted opportunities.
• Budget appropriately for risk and defend budgeted contingencies.
• Budget and plan for stock ordering.
• Manage financial performance, understanding variances and taking action to achieve your budget and objectives.
• Manage costs in seasonal or cyclical businesses.
• Simply assess the viability of entering new markets or developing new products.
• Overview of the budget process
• Case study: reviewing a simple budget scenario
• Being clear about initial assumptions and limiting factors
• Knowing where to find information that might be needed
• Analysing potential income and expenditure: what events and occurrences do we need to consider? Internal, external, definite and uncertain
• Nature and behaviour of costs
• Understanding different costing methods and their relevance to decision making and budgeting
• Stock forecasting and how to calculate the minimum quantity needed
• Apportioning overheads
• Budgeting for risk and contingencies
• Break-even analysis for simple decision making
Facing the Actuals
• What are the variances and why are they important?
• The budget is the plan, i.e. understanding the need to proactively work towards budget and adhere to budget
• Comparing actual costs to monthly and year-to-date budget
• Understanding the significance of changes in variances
• Flexing the budget
The Cash Budget
• Why they are needed. Do high profits necessarily mean everything is going well?
• Case study: preparing a cash budget
|Course Duration||1 Day|