TRAINING COURSE: Financial Analysis, Planning and Controlling Budgets

PROJECTION OF FINANCIAL REQUIREMENTS

•  Interrelationship of financial projections 
•  Operating budgets 
•  Standard costing and variance analysis 
•  Cash forecasts and cash budgets
•  Sensitivity analysis
•  Dynamics and growth of the business system
•   Operating leverage
•  Financial growth plans
•  Financial modeling

ANALYSIS OF INVESTMENT DECISIONS

•  Applying time-adjusted measures
•  Net present value (NPV) and internal rate of return (IRR) 
•  Strategic perspective 
•  EVA and NPV
•  Refinements of investment analysis
•  Equivalent annual cost (EAC)
•  Modified internal rate of return (MIRR)
•  Sensitivity analysis, scenario analysis, simulation, and NPV break-even 
•  Dealing with risk and changing circumstances
•  Valuation and Business Performance
•  Managing for shareholder value
•  Shareholder value creation in perspective
•  Evolution of value-based methodologies
•  Creating value in restructuring and combinations
•  Financial strategy in acquisitions
•  Business valuation
•  Business restructuring and reorganisations
•  Management buy outs (MBOs) and management buy ins (MBIs)

MODULE 2: SETTING & CONTROLLING BUDGETS STRATEGIC AND FINANCIAL PLANNING

• Financial accounting and management accounting
• The links between strategic planning, budget setting, and performance measurement
• Planning and strategic management
• Mission, vision, and objectives
• The planning process
• External environment analysis, internal resources analysis, SWOT and
• PASTEL
• Shareholder wealth maximization, value creation, and financial strategy Financial planning and modeling, and long-term and short-term financing

COST ANALYSIS FOR BUDGETING

• What is costing?
• Cost behavior – fixed costs and variable costs
• Contribution, cost/volume/profit (CVP) analysis, and break-even models Traceable costs and non-traceable cost allocation
• Product costs and period costs – product costing for inventory valuation
• and profit ascertainment
• Direct costs, indirect costs, absorption costing, and marginal costing Product costing for budget setting, budgetary control, and performance
• measurement
• Refinement of the costing system and activity-based costing (ABC)

THE FRAMEWORK FOR BUDGETING

•   What is a budget – and why budget?

•   The budgeting framework and the various types of budgets: top-down;

  bottom-up; incremental; zero-based; activity-based

•   The budget process

•   Qualitative and quantitative techniques for forecasting sales and costs, and

  sales pricing

•   Budgeting for labor costs and depreciation

•   The departmental budget

•   Preparation of the master budget and the cash forecast/budget

• The human side and the behavioral aspects of budgeting

  
  

  ACTIVITY-BASED BUDGETING (ABB), CAPITAL BUDGETING, BUDGETARY CONTROL, AND VARIANCE ANALYSIS

•   How the budget is controlled in your organization

•   Activity-based budgeting (ABB)

•   Budgeting for capital projects

•   Discounted cash flow (DCF) investment appraisal methods of net present

  value (NPV) and internal rate of return

•   Capital rationing and the profitability index (PI)

•   Budgetary control systems and responsibility accounting

•   Standard costing for budgeting and budgetary control

•   Fixed budgets, flexed budgets, variance analysis and the reasons for

  variances

•   Integrating continuous improvement into the budget process
  
•   Advantages and disadvantages of budgeting
  
•   How to improve the budget process in your organisation
  
•   The conflict between performance improvement and the costing system
  
•   Lean thinking and performance improvement
  
•   What next – beyond the budget?
  

•   The balanced scorecard – linking strategy with budgeting and with

• performance measurement

•   Developing and adapting the balanced scorecard: financial perspective;

• customer perspective; internal business process perspective; learning and growth perspective