PROGRAM'S BACKGROUND

A budget is the formal expression of the plans and objectives of management that covers all phases of operations for a specific period of time. Without clearly outlined budgets, organizations are unable to predict profits or losses or create plans for the future ultimately leading to failure. This program will provide a foundation for:

›       Determining how to select a budgeting system that suits your organizations specific needs

›       Learning how to construct a budget to reflect your long-term objectives and performance targets

›       Gaining unique and practical insight if how to pinpoint budget variances

›       Adding credibility to your budget proposal

›       Developing budgets for all activities of your company

›       Defining the real value of budgets and how budgets can destroy the actual performance of the organization when used incorrectly 

PROGRAM'S OBJECTIVES

This Program’s Attendees Will Be More Able To:

›       Know what budget points are justified and be able to prove it!

›       Gain instant insight into potential budget problems before you have to live with them

›       Have an understanding of budget types and processes, and how each impacts your operations

›       Learn a complete glossary of terms dealing with each aspect of your budget process

›       Have confidence that your discussions with financial administrators won’t leave you struggling to understand budgeting concepts or terminology

›       Know the tools necessary to meet your budget goals, whatever the economic environment

›       Be assured that your budget will cover all your operating needs including surprises - without padding

PROGRAM'S ATTENDEES

›       Senior Personnel

›       Supervisors

›       Administrators

›       Department Heads

›       Key player on any budgeted team

›       Purchasing Decision-Makers 

PROGRAM'S OUTLINE

THE WHAT & WHY OF BUDGETING

›       Budgeting and Reporting Overview

›       Getting started: Budgeting is a communication process

›       The key benefits of good budgeting and the pitfalls of bad budgeting

›       Essential elements in planning any viable budget

›       Know your organizations budgeting environment

›       Putting the pieces together: The budget preparation phase - planning is most of the battle

›       Monitoring the approved budget

›       Administering a Budget

›       Budgets are financial statements: How do we use them effectively. What do they tell you about the past ... the future?

›       Learn how to use them to pinpoint organizational strengths and weaknesses

›       The income statement: What does it measure? What is missing from it?

›       The balance sheet budget: a measure of health of your department or organization

ADMINISTERING A BUDGET

›       The capital budget: The long-term commitment of viability. Just how practical are your plans for expansion, research and development, new personnel, etc.?

›       The cash budget: The first line of survival

›       Spot the key problems and opportunities every budgeting process uncovers

›       Essential Budgeting Tools

›       Methodology of effective budgeting

›       The budgeting checklist

›       Unit-cost budgeting: ideal for operations-oriented environments

›       Fixed-cost budgeting: the tool budget-builders reach for most often

›       Program Planning and Budgeting: A more strategic look at budgeting

›       Review the methods available to address your unique budgeting challenges

›       Zero-based budgeting: essential for justifying proposed expenditures from the ground up

›       Activity-Based Budgeting (ABB): Fad or Fact?

ANALYZING BUDGET TYPES

›       The final plan: sales plan, production plan, purchases budget, Labor budget, Operating expenses, Capital budget

›       The sales plan begins with P X Q

›       How to prepare a production budget

›       Prepare a manufacturing budget including: budgeting for materials, direct labor and overhead

›       How to plan and prepare a research and development budget

›       Budgeting terms made simple; a glossary of words you will use again and again

BUILDING THE BUDGET

›       It all begins with sales or revenues

›       Where do revenues come from?

›       Where do the pieces fit? Capital expense or operating expense?

›       Examine capital expenditure requests

›       Methods of economically evaluating capital expenditures and projects

›       Controlling general and administrative expenses

›       Develop unit indicators for budget preparation and control

›       Identify overhead and determine proper allocation methods

›       Budget development

›       Cash versus accrual accounting - why are they different?

›       What are the rules for budgeting and who makes them?

›       Use basic accounting technology to properly compare cash inflow to outflow

›       Post approval, what steps to undertake after the budget is approved

›       Top down or bottom up? Which one works and why

›       Management by objectives, results that matter

BUDGET VARIANCES

›       Is the alleged variance within your control?

›       What are some factors beyond your control? The right perspective will make the difference

›       Learn where to look first for variance factors hardest to find

›       How to know when and how your budget is warning you of outside interference

›       Tips on how to respond to requests for variance explanations

›       Monitoring the Budget

›       Monitoring methods such as Management by Exception

›       Understand the difference between fixed, variable and semi-variable costs using a simple but effective illustration

›       Expect the unexpected: some costs simply cannot be budgeted

›       Learn and use the unit-cost concept immediately and effectively

›       Establish and track monthly targets within your annual budget

›       When to break the budget

ADDITIONAL DETAILS