A budget is an organization’s representation of its plans expressed in quantitative terms. It is like a GPS to an organization’s operations given that it provides direction to management for planning, control and decision making, among other benefits. It is also a motivating force and helps to co-ordinate and enhances team-work in the organization to the extent that everyone is involved in the budgeting process. Consequently, training and understanding of this process will benefit all employees particularly the supervisors, managers and executives. The budget is the plan and comparison of the planned results against the actual results provide the control aspects of the budgetary control process which involves all Heads of Departments, Supervisors and Managers in general.
Workshop Content and Schedule
- Opening and Introduction
- Pre-Workshop Assessment
- Overview of Financial Accounting Statement and Terminologies
- Income Statement and Balance Sheet and their Links with Revenue, Profit and Expenses
- Overview of Cost Systems and Terminologies
- Direct and indirect Costs
- Fixed and Variable Cost
- What is Budgeting?
- Significance of a Budget
- Characteristics of a Budget
- The Dynamics and Goal of Budgeting
- Systems Control and Information Systems Theory Framework
- A Servo System – The Ultimate Goal
- The Human Application
- The Engineering Application
- The Business Application
- Budgeting Systems – Types
- Advantages and Disadvantages
- Continuous/Rolling Budget
- Participative Budget
- Pessimistic Budget
- Ideal Budget
- Realistic Budget
- Group Exercises and Problem Solving
- Zero-Based Budgeting
- Static Budgeting
- Flexible Budget
- Budgets as Performance Evaluation Tools
- Management by Exception and Variance Analysis
- The Master Budget
- Preparing the Operating Budgets
- Sales Budget
- Production Budget
- Direct Material Budget
- Direct Labor Budget
- Manufacturing Overhead Budget
- Selling and Administrative Budget
- Preparing the Cash Budget
- Credit Sales Collection Schedules
- Credit Purchases Payment Schedule
- Cash Budget
- Group Budget Preparation Exercise
- Issues Involving Dana Group Budget Preparation Experience
- Income and Expenditure Budget
- Behavioral Aspects of Budgeting
- Designing and Using the Budget Formulae
- Forecasting Using Regression Formulae
- Other Forms of Forecasting Techniques
- Moving Average
- Trend Analysis
- The Use of Excel
- Bottom-Top Budgeting
- Top-Bottom Budgeting
- Budget Padding Abuses
- Conflicts among Departments in Budget Preparation
- How to resolve the Conflicts
- The Use of Budget Committee
- Application of Management Decision Making using Budgets
- Group Interaction
- The Use of ERPs and Technology in Budgeting
On completion of the workshop, the participants should:
- Be competent to prepare the master budget, sales budget, cash budget.
- Be competent to prepare the flexible budget.
- Be capable of articulating, the role and importance of budgets in business organization and for decision making.
- Be able to describe different types of budgets.
- Be capable of applying simplified methods, quantitative techniques in budgeting.
- Demonstrate the use of kaizen (Japanese) budgeting technique.
- Understand the influence of human behaviour in budgeting
- Be capable of illustrating how to enhance profitability through sound budgetary techniques.
- Understand the use of computer based application in budgeting and much more.
Duration: Four Days