Budgeting and Forecasting Modelling Training

Budgeting and Forecasting Modelling
17 – 18 Februari 2015, 03 – 04 Maret, 14 – 15 April, 05 – 06, Mei 2015, Juni 2015, Juli 2015 , Agustus 2015, September 2015, Oktober 2015, November 2015, Desember 2015. (Tanggal dan Bulan bisa Request)

Course Background

This 2-day course is designed to develop and reinforce participants’ understanding and practical aspects of preparing budgets and forecasts in an organisation.

Core principles for budgeting;
Techniques for budgeting;
Drivers of costs and revenues
Behaviours within organisations which influence budget-setting, and management responses to budgets
Developing budgets into ongoing forecast updates

The principal aim of the course is to improve participants’ knowledge and ability to prepare budgets, and use these skills to support the budgeting process in their organisations.

Session 1 – Introduction & Course Objectives

Brief review of course objectives
Introduction of learning methods

Session 2 – Basics of Budgeting

Why do organisations prepare budgets?
Relationship between strategy and budgeting
Different types of budgets – P&L, capex, headcount, project, cashflow

Session 3 – Philosophies and Approaches to Budgeting

Top-down approach
Bottom-up approach
Reconciling the two results
Stretch targets – revenue & cost budgets
Projecting current performance
Zero-base budgeting
Use of contingency
Role of rewards and bonuses in target-setting
Revising unacceptable plan results

Exercise – prepare a simple budget from a number of different perspective, and discuss differences between the resulting plans.

Session 4 – Budget Drivers

Activity-based cost drivers
Volume changes: fixed vs. variable costs
Absorption of overheads into unit costs
Cost allocation techniques for indirect and corporate overheads
Revenue drivers: customer and market segmentation
Controllable and non-controllable factors

Exercise – for a given case study, identify drivers for a number of costs and create a budget for them.

Session 5 – Moving from Budget to Forecast

Dealing with the time lag between budget preparation and start of plan period
Splitting an annual budget down into months or quarters
Revising assumptions and drivers
Rolling forecasts in response to actual results

Exercise – for a given budget prepared 3 months previously, update in light of new assumptions and drivers

Session 6 – Actual Performance vs. Budget

Introduction to variance analysis
Impact of variances on remainder of plan period
Re-forecasting: changes to forecast and re-calendarising
Flexible budgets and target adjustments
Responding to poor results in forecasts
Exercise – for a given budget and actual results, prepare asimple variance analysis and suggest how each variance might
impact the remainder of the budget period

Session 7 – Budgeting Behaviours

Incentives, rewards and bonuses
Dysfunctional behavior

Exercise – for a given budget and bonus scheme, analysepotential dysfunctional behavior and how this might be mitigated.

Session 8 – Wrap-Up and Questions