The Whole Thing reserves the right to alter dates, content, venue and the trainer for each course with reasonable notice.

CERTIFICATION

This course is CPD Certified with each day equivalent to 6.5 hours of CPD

Budgeting and Cost Control Principles and Practice for Better Economic Forecasts and Great Results  

WHO SHOULD ATTEND?

Business owners, managers at all levels and top talent in the organisation that are responsible for the budgeting and cost control of projects that want to learn (or relearn) and improve their budgeting and cost control competency so that they can get the very best results from their leadership, teams and colleagues in pursuit of the organization’s goals.

COURSE DESCRIPTION

Budgeting is one of the most important management skills that you can have. In any economic forecast, planning and budgeting are crucial when it comes to conserving and increasing your resources. A budget is a financial plan and a list of all planned expenses (your costs) and revenues. The use of a budget can be helpful to not only companies but individuals and families as well. In order to grow every company from the small business to the large corporation must keep track of their finances. Once you have a clear picture of how much money is coming in and going out, you can determine where you stand financially. It is a plan for saving, borrowing and spending. Mastery of the principles and practice of budgeting and cost control is vital for effective leader and leadership and driving business growth.

Budgeting and Cost is a very practical and proven approach to budgeting and cost control that covers the fundamentals of budget creation and cost estimation that establishes the financial standards required for effective project implementation and control. The course gives particular attention to the application of budgeting and costing techniques as our experience tells us that lack of this process knowledge coupled with an inconsistent approach to budget creation is where most budgeting and cost control practice fails. The program takes a holistic view of budgeting and cost control and introduces the delegate to the knowledge, skills and attitude required to confidently create, communicate, implement and control any project budget for great results.

The program is well researched, knowledge-based and designed with the individual learner at the centre of the learning process which means that the course is extremely interactive and practical.

COURSE OBJECTIVES

By the end of this course delegates will be able to:

✓ Determine budget and the budgeting and cost control process

✓ Determine appropriate estimation techniques in the development of revenue and expense budgets.

✓ Determine management cost reports and take corrective action

✓ Identify how the budget relates to the key financial statements: balance sheet, income statement, and cash flows

✓ Identify all the appropriate costs to be included in a capital expenditure proposal

✓ Develop a budget consistent with the organization strategic plan.

✓ Develop the skills to effectively prepare budgets and cost estimate

✓ Practice hands-on analysis and recognition of accounting transactions

✓ Produce drive to self-develop in budgeting and cost control

✓ Produce positive impact on the overall performance of each delegate and the organization

COURSE CONTENT

DAY 1 • INTRODUCTION TO MANAGEMENT ACCOUNTING

Financial Accounting Overview

• An overview of Financial Accounting and the 3 key statements : Balance Sheet, Income (Profit and Loss Statement) and Cash Flow Statement
• What is Management Accounting?
• How does it differ from Financial Accounting?
• Principles of Budgeting and Cost Control and Techniques

Case Study 

• Budget and Cost Analysis for a hypothetical company

Types of Budgets

• Master Budget
• Flexible Budgets
• Project Budgets
• Capital Expenditure Budgets

Types of Costs

• Direct Costs, Indirect Costs, Full Product Costs, Inventoriable Product Costs and Period Costs

Job Costing and Cost Overview

• Volume – Profit Analysis

DAY 2 • THE MASTER BUDGET

Approaches to Budgeting

• Strategic Framework for the Master Budget
  • SWOT Analysis
  • Organisation Strategic Business Plan -> Master Budget

Cost Management Drivers

• Value Chain analysis

The Master Budget

• Budget as a Management tool
• Analysis, Variance and Performance Report
• Components
• Preparing the Master Budget
• Budgeting and Sensitivity Analysis
• Cost Control and Management Budget Reports

Group Exercise 

• Preparing a Master Budget for a company

DAY 3 • FLEXIBLE BUDGETS, STANDARD COSTS AND BEST PRACTICES

Flexible Budgets

• How Managers use Flexible Budgets
• Using Flexible Budgets to understand Variance

Overheads 

• Manufacturing Overhead Variances
• Standard Cost Accounting Systems
• Overhead Allocations
  • Problems and Solutions in Cost Allocation

Group Discussion

• “Best Practices in Budgeting and Cost Controls”

Best Practices from the Marketplace and Other Industries

• Profitability during Tough and Turbulent times
• Tactical Cost Management
• Current and Future Trends in Banking and Financial Services
• Avoiding the “red flags” of “Creative Accounting”
• Doing the right things
• Avoiding some common mistakes in Budgeting and Cost control

DAY 4 • SPECIAL BUSINESS DECISIONS, PROJECTS AND CAPITAL BUDGETING ANALYSIS

Special Business Decisions

• How to make Short-term Special Decisions

Project Budgeting and Analysis

• Complexities of Budgeting for a Foreign Project
• Tax considerations
• Project versus Parent Valuation
• Capital Expenditure Budgeting and Analysis
• Non-Discounted Cash Flow Models (Payback, ARR)
• Discounted Cash Flow Models (NPV, APV, IRR)
• Risk Adjustment in the Capital Budgeting Analysis
• Purchasing Power Parity Assumption
• Sensitivity Analysis
• Real Options

Case Studies

• Preparing a Project Budget
• Petroleum Development and the Curse of Oil

Key Learning Review

Group discussion and professional feedback to consolidate key learning. Delegates will leave the day with a list of development activities to improve their budgeting and cost control competency back at work.

IN ADVANCE

Each delegate will be asked to complete a pre-course questionnaire to determine their individual learning objectives. These will be used by the trainer to give on track training that is focused on the individual learner attending.

ON-TRACK FOR GROWTH

The individual leaves this program with a Personal Action Plan to encourage immediate transfer of training to the job.

REGISTER FOR THIS COURSE

To register for this course please review the grey box above. If no public course is listed or the location and dates shown don’t suit you then please request a proposal for this course either as a public training course or if you have 6 delegates or more as an in-company training course.