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Budgeting & Cost Control Training Course

Course Overview

Your Financial Mastery Journey starts here!

In today’s business environment, a solid knowledge of accounting principles is crucial for success. Thriving in this competitive environment demands more than just financial expertise; it requires efficient budgeting and fine cost control skills. Our course positions budgeting as the keystone for operational focus, financial statement analysis, and seamless communication with stakeholders, translating strategic business ambitions into tangible financial and operational plans.

This program goes beyond theory, to practical applications of diverse budgeting approaches. Gain expertise in constructing each component of the master budget, resulting in a detailed 12-month budgeted Profit and Loss statement, Cash Flow Statement, and Balance Sheet. Considering Working Capital conditions and financial requirements, exploring the connections between these financial statements.

The course’s practical approach is supported by real-world exercises that reinforce learned concepts. Acquire skills in standard Investment Appraisal techniques, such as Return on Investment (ROI), using Excel and learn income statement analysis.

Key Benefits:

  • Gain a profound understanding of budgeting’s strategic importance in business planning
  • Master key components, including revenue, production, operating expenses, and CAPEX
  • Formulate comprehensive financial statements from budget components
  • Develop and enhance budgeting skills using Excel
  • Explore Incremental Budgeting and Zero-Based Budgeting fundamentals
  • Utilize Investment Appraisal techniques (ROI) for informed decision-making

Who Should Attend

  • Project Managers
  • Contract Managers
  • Operations Managers
  • Finance Business Partners
  • Auditors and Internal Control
  • Risk and Compliance Regulators
  • Accountants and Consultants
  • Financial Planning & Control Staff
  • Managers who manage budgets and control costs for their departments/organizations.

Course Objectives

At the end of this learning course, participants will be able to:

  • Become a professional who is capable of creating efficient budgeting
  • Be able to take cost control of your organization to the next level of efficiency
  • Connect your budgeting approach with your business strategy seamlessly
  • Learn how to perform revenue budgeting by month, product, and price
  • Deal with operating expenses and be able to see able the gaps in different expenses
  • Know in detail about CAPEX budgeting and how it can benefit your organization
  • Create cash flow budgeting considering investment and financing activities
  • Create the budgeted Balance Sheet in Excel using debt as the balancing plug
  • Master variance analysis and successfully use it an efficient tool of controlling
  • Improve the skills to perform the budgeting process in Excel with excellence
  • Understand the whole structure of budgeting and the best tools to control it

Course Content

Introduction

  • The relationship between strategy, planning, budgeting, controlling, and variance analysis
  • Budgeting as a planning tool
  • How to incorporate business plans and business initiatives into the budget
  • How the budget represents the strategy and business plan for the year
  • Further motivations for and advantages of budgeting

The proper relationship between the budgeting office and operations in the budgeting process

  • Roles and responsibilities of operations and finance
  • Who owns the budget?

Budgeting approaches

  • Incremental budgeting
  • Zero-based budgeting
  • Bottom-up budgeting
  • Top-down budgeting

The components of an effective budgeting process

  • The steps in the budgeting process
  • Information flow in the budgeting process

The components of the master budget

Revenue budgeting

  • By month
  • By product
  • By price

Manufacturing or production budgeting (Cost of Goods Sold)

  • Variable expenses
  • Manufacturing overhead expenses

Operating expenses

  • Sales and Marketing expenses
  • General & Administration expenses
  • Depreciation
  • Provisions (bad debt, warranties)

Allocation of overheads to the operations

Budgeting for initiatives and special projects

Budgeting for contingencies

CAPEX budgeting

  • Replacement assets
  • New investments/assets
  • Updating the depreciation schedule

Cash Flow Budgeting

  • Operating Cash Flow
  • Cash flow from investment activities
  • Cash flow from financing activities

Creating a budgeted P&L in Excel

  • Building a flex-budget
  • Incorporating new business initiatives
  • Using vertical ratios and KPIs in the budget

Creating the budgeted Balance Sheet in Excel

  • Deriving the Working Capital components from the P&L and DSO/DPO
  • Deriving Assets from depreciation and the CAPEX budget
  • Incorporating finance requirements
  • Using debt as the balancing plug

Creating the budgeted cash flow statement in Excel

  • Using historical debtor days (Days Sales Outstanding-DSO)
  • Using historical creditor days (Days Payable Outstanding – DPO)
  • Entering fixed expenses
  • Entering variable expenses
  • Incorporating CAPEX
  • Determining finance requirements

Cost control

  • The role and function of controlling
  • Discipline
  • Information for analysis
  • Investigating variances

Variance analysis

  • A monthly tool for operations managers
  • As a tool of controlling
  • Breaking variance down
  • Variance analysis for business unit managers
  • How to create variance reports in Excel: formulas, formatting and conditional formatting

Investment Appraisal for capital budgeting and business expansion (ROI – Return on Investment)

  • What is investment appraisal?
  • Determining the investing cash flows
  • The first filter: Payback Period
  • The time value of money
  • Understanding the cost of capital, including “discount rate”, “WACC”, etc.
  • Deciding the required/targeted rate of return (WACC)
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • NPV and IRR calculations in Excel
  • Sometimes we invest despite a poor ROI

Table of Contents

Course Code DU0302 Category
Location: Dubai, UAE
Duration: 5 Days
Language: English
Cost: 15,770 SAR
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