BUDGETING, FORECASTING, AND BUDGETARY CONTROL

Live-Online Training: N250,000
Classroom Training: N350,000
3 - 4 participants: 5% discount
5 or more participants: 10% discount

(Available also for Customised Training by Duration, Venue & Fee)

Programme Description

Budgeting, forecasting and budgetary control are essential management processes for allocating resources, controlling costs, evaluating performance and achieving organisational objectives. Managers and departmental heads must not only prepare realistic budgets but also monitor implementation, explain variances and initiate timely corrective action.

This practical programme is designed to equip managers, finance personnel, budget officers, project managers and heads of departments with the knowledge and tools required to prepare, implement, monitor and control departmental and organisational budgets. Participants will learn how to develop appropriate budgets, apply alternative budgeting methods, use strategic forecasts, build budget models with Microsoft Excel and establish effective budgetary control systems.

The programme also develops participants’ ability to interpret financial and operational information, analyse budget variances, prepare management reports, revise forecasts and recommend appropriate corrective actions. Practical illustrations, Excel-based exercises, case studies and an integrated budgeting simulation will enable participants to apply the learning directly within their organisations.

Training Objectives and Learning Outcomes

At the end of the programme, participants will be able to:

1. Explain the purpose, characteristics and benefits of budgeting in organisational management.
2. Identify and apply different types of budgets and alternative budgeting methods.
3. Describe the major stages, responsibilities and relationships involved in the budgetary process.
4. Prepare realistic departmental and organisational budgets using relevant financial and operational assumptions.
5. Apply strategic planning and forecasting techniques in developing budgets and financial projections.
6. Build and manage budget models using relevant Microsoft Excel formulas, tools and techniques.

Course Contents

DAY ONE

• Why Budget?
• The main characteristics of budgeting
• Types of budget
• Outline of the budgetary process
• Budget preparation with a typical practical illustration of a budget
• Implementing the budget – key success factors
• Benchmarking for performance management
• Advantages of budgets to business organisations

DAY TWO

• Alternative budgeting methods
• Budget organisation and administration
• How those roles may conflict with each other
• Ways by which management may resolve the conflict
• Stages in the budgetary process
• Relevance of strategic planning and forecasting

DAY THREE

• What is budgetary control?
• The steps for installing an effective system of budgetary control
• Management action and cost control
• Importance of budgetary control in project management:
• Measuring performance
• Analysing budget variances
• Actions to take after analysis

DAY FOUR

• Creating master budget forecasts using Advanced Excel techniques
• Mastering Excel formulas and techniques for building budgets:
• Excel formulas for budget models
• Custom formatting of numbers
• Formula debugging and auditing techniques
• Data validation
• Consolidating and linking Excel workbooks
• Grouping and outlines

DAY FIVE

Forecasting, Management Reporting and Integrated Budget Simulation

• Understanding the relationship between budgets and forecasts
• Types of forecasts:
• Short-term and long-term forecasts
• Operational and financial forecasts
• Rolling forecasts
• Cash-flow forecasts
• Updating forecasts using actual performance and emerging business information
• Identifying and reviewing key budget and forecast assumptions
• Applying sensitivity and scenario analysis:
• Best-case scenario
• Most likely scenario
• Worst-case scenario
• Forecasting revenue, costs, cash flow and resource requirements
• Preparing budget performance reports for management
• Developing budget dashboards and key performance indicators
• Translating variance analysis into corrective management actions