Advanced Budgeting & Cost Management

About the Course

This 5-day interactive Advanced Budgeting & Cost Management training course aims to introduce delegates to the general framework of budgets in terms of their concept, importance, economic, financial and regulatory dimensions, and how to prepare them according to the latest international models and practices. In addition to providing delegates with the skill of preparing budgets by identifying the foundations of a limited budget of income and expenses and the general rules that control judicial capabilities. Taking the skill of budgeting the budget in light of several foundations for the budget, studying the relationship between mechanisms and objectives, and austere budgets that translate all of this through quantitative numbers is the basis for building budgets today. Any deviations from numbers are considered deviations from achieving the plan or will limit the achievement of the entire strategy drawn up for the institution.

In addition to budgeting skills, this training programme aims to manage and analyse direct, indirect, fixed and variable costs, methods for calculating the cost of capital, whether equity or debt capital, and estimating the weighted average cost of capital, etc. It also focuses on capital budgets and techniques used in evaluating investments. Using traditional "accounting" methods such as the payback period or economic methods that take into account the time value of money such as the net present value and the internal rate of return, which enables the investor to achieve financial success.

Core Objectives

The delegates will achieve the following objectives:

• Acquire knowledge of the types of budgets in the public and private sectors
• Building budgets using modern methods at the public and private sector levels
• Understand how to analyse and analyse deviations at the binary, triple, and quad levels
• Determine the importance of linking budgets to the organisation’s strategic plan
• Clarifying the relationship of the budget to the primary financial statements: the balance sheet, income statement, and cash flow statement
• Identify the main elements of operating and capital budgets and evaluate different approaches to preparing budgets
• Apply cost control tools, analyse various administrative reports, and take appropriate corrective actions
• Calculate capital budgeting evaluation techniques to assist in capital decision-making

Training Approach

This training course will be conducted along with workshop principles with formal lectures, case studies, and interactive work examples. Relevant case studies will be provided to illustrate the application of each tool in an operations environment. Each learning point will be reinforced with practical exercises.

The Attendees

Delegates in this training course must have a level of knowledge in accounting in general and managerial accounting, in particular, to be able to build on their skills.

Likewise, it will be valuable to the professionals but not limited to the following:

• Financial Managers
• Planning Managers
• Financial Professionals
• Financial Analysts
• R&D Professional
• Members of the Internal Audit Department
• Sales & Marketing Professional
• General Accounting Professional
• Business Unit Professional
• The staff person who will be responsible for entering data into the budget system or training others how to enter information
• Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job
• Anyone who wants to refine and advance budgeting and costing knowledge

Daily Discussion

DAY ONE: THE CONCEPT OF PLANNING BUDGETS AND METHODS OF PREPARING THEM

• The Concept and Importance of Budgets
• General Principles for Preparing Budgets
• Steps for Preparing Budgets
• Types of Planning Budgets
• Ongoing Budgets
• Comprehensive Budget
• Capital and Operating Budgets
• Estimated Financial Statements
• Direct and Indirect Costs
• Characteristics of an Effective Budget

DAY TWO: COST CONTROL AND ANALYSIS OF DEVIATIONS

• Balancing as a Control Tool
• Oversight Process
• Characteristics of an Effective Control System
• Responsibility Centers
• Identify Deviations
• Take Corrective Action

DAY THREE: BUDGETING AND ANALYSIS OF CAPITAL PROJECTS

• Preparing the Revenue Budget (receipts) in Government and Private Units
• Modern Forecasting Methods in Forecasting Revenues and Expenses
• Preparing the Expenditure Budget (expenditures) in Government and Private Units
• Case of an Integrated Process for Preparing the Expenditure Budget in Government and Private Units
• Using Flexible and Fixed Budgets in Performance Evaluation and Financial Decision-making
• The Time Value of Money
• Simple and Compound Interest
• Identify and Analyse Cash Flows

DAY FOUR: COST ANALYSIS AND DECISION-MAKING

• Direct and Indirect Costs: Fixed and Variable Costs
• Cost Drivers
• Cost Analysis for Short-term Decision-making Purposes
• Concepts of Direct Costs and Analysis of Contribution to Decision-making
• The Relationship between Different Types of Costs and Decision-making
• The Role of Cost System Tools in Balancing Short-term and Long-term Decisions

DAY FIVE: DESIGN A MODEL FOR CAPITAL BUDGETS

• Cost of Capital
• Equity Capital Cost Estimation
• Debt Capital Cost Estimation
• Weighted Average Cost of Capital (WACC)
• Pay-back Period
• Simple Rate of return
• Net Present Value
• Internal Rate of Return
• Break Even Analysis