Course Overview:
This course introduces the fundamental concepts and techniques of budgeting and forecasting. Participants will learn how to develop realistic budgets, use forecasting methods to predict future financial performance, and understand the role of budgeting and forecasting in organizational planning and control. The course is designed to enhance financial planning skills for professionals across various functions.
Course Objectives:
By the end of this course, participants will be able to:
- Understand the purpose and importance of budgeting and forecasting
- Differentiate between budgeting, forecasting, and financial planning
- Develop detailed and flexible budgets aligned with business objectives
- Apply various forecasting techniques and tools
- Monitor and control budget performance
- Use budgeting and forecasting to support decision-making
- Communicate budget and forecast information effectively
Who Should Attend:
- New and aspiring finance professionals
- Managers and team leaders responsible for financial planning
- Budget coordinators and analysts
- Project managers involved in budget oversight
- Professionals from non-financial backgrounds seeking budgeting skills
- Anyone involved in preparing or managing budgets
Course Outline:
Fundamentals of Budgeting
- Definition, types, and purposes of budgets
- The budgeting process and cycle
- Key components of a budget
- Aligning budgets with strategic goals
- Participative vs. top-down budgeting approaches
Budget Preparation Techniques
- Identifying revenue and expense drivers
- Fixed vs. variable costs and their budgeting implications
- Zero-based budgeting and incremental budgeting
- Rolling budgets and flexible budgeting
- Using historical data and assumptions effectively
Introduction to Forecasting
- Difference between forecasting and budgeting
- Qualitative vs. quantitative forecasting methods
- Common forecasting techniques: trend analysis, moving averages, regression
- Incorporating external factors and market trends
- Forecasting accuracy and error measurement
Budget Monitoring and Control
- Tracking budget vs. actual performance
- Analyzing variances and identifying causes
- Corrective actions and budget revisions
- Role of variance analysis in financial control
- Reporting budget performance to stakeholders
Integrating Budgeting and Forecasting in Decision-Making
- Using budgets and forecasts for resource allocation
- Supporting operational and strategic decisions
- Scenario planning and sensitivity analysis
- Communicating financial plans across departments
- Case study: Developing a simple budget and forecast