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Course Overview

Budgeting is a must competency for all professionals in the supervisory and managerial levels. Understanding budgeting types, planning a budget, executing and monitoring budgets are covered in this course. Additionally, delegates will practice budgeting forecasting methods and designing dynamic budget models. They will also design capital budgeting viability models.

Course Methodology

This course demonstrates core principles in Budgeting and Planning and utilizes Excel in performing modern and creative techniques of Budgeting. Real-life case studies, individual workshops, and team presentations by participants.

Course Objectives

By completely attending this course, participants will be able to:
  • Understand what is meant by strategic planning and budgeting
  • Perform the 4 functions of management using case studies
  • Practice different types of budget styles, techniques, and methods and determine pros and cons of each type
  • Learn and exercise several forecasting techniques to better budget for future expenditures and revenues
  • Acquire in-depth knowledge and application of the capital budgeting tools and techniques. 
  • Apply different cost mechanism tools and optimization procedures
  • Learn how to differentiate between cost elements and their impact of the overall budgeting decisions.

Target Audience

All managers, supervisors and analysts who plan, design, execute, and/or monitor management budgets. Professionals interested determining the viability and success factors of capital projects.

Target Competencies

  • Strategic Planning and budgeting
  • Functions of Management
  • Budget Cycle, Process and Approaches
  • Forecasting Techniques
  • Capital Budgeting
This course requires the use of laptops with Excel 2010/2013/2016 installed. On any courses conducted in the UAE, VIF will provide laptops to all delegates for the duration of the course. For courses outside the UAE, delegates must bring their own laptops with Windows-based Excel 2010+ fully installed.

Course Outline

Planning and the Function of Management

  • Strategic vs. long-term planning
  • The four management functions
  • Components of the strategic plan
  • SWOT analysis
  • Approaches to developing a budget
  • Control is the weakest link!

Master Budgeting

  • Budget Development Process
  • Characteristics of Successful Budgeting
  • Top 10 Problems with Budgeting
  • Types of Budgets

Budgeting: Process and Approaches

  • The advantages of budgeting
  • The budget process
  • Rolling budgets
  • Operating and capital budgets
  • The budgeted financial statements
  • Approaches to budgeting:
  • Incremental budgeting
  • Zero based budgeting
  • Flexible budgeting
  • Kaizen budgeting and continuous improvement
  • Activity based budgeting
  • Tools of forecasting
  • Direct and indirect costs
  • Characteristics of an effective budget
  • Problems in budgeting

Forecasting Techniques

  • Steps in developing forecast models
  • Assumptions and Input Variables
  • Time series methods
  • Forecasting revenues and expenses
  • Forecasting working capital
  • Forecasting cash flow
  • Creating a forecasted business model
  • Performing what-if-analysis and scenario analysis

Capital Expenditure Budgeting and Analysis

  • Time value of money
  • Simple versus compound interest
  • Identifying and analyzing cash flows
  • The discount rate: using cost of capital
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Profitability Index (PI)
  • Pay-Back Period (PBP)
  • Accounting Rate of Return (ARR)
  • Approval for Expenditure (AFE)
  • Sensitivity and risk analysis

Cost-Volume-Profit Analysis (CVP)

  • Identifying the fixed costs and variable costs
  • Computing breakeven point in units
  • Computing breakeven point in sales
  • Assumptions of CVP analysis
  • Using CVP in budgeting decisions
Location & Dates
Call us at +971 4 430 8394