Preparing budgets and applying cost control tools

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

  1. Determine the importance of linking budgets to the strategic plan of the institution.
  2. Clarify the relationship of the budget to the main financial statements: the balance sheet, the income statement, and the statement of cash flows.
  3. Preparing the main elements of operating and capital budgets and evaluating the different approaches to preparing budgets
  4. Equipping with modern financial, accounting and administrative tools in preparing current and capital planning budgets
  5. Applying cost control tools, analyzing various administrative reports, and taking appropriate corrective measures
  6. Calculate capital budget evaluation techniques to assist in capital decision making.
  7. Use cost, volume and profit analysis in making budget decisions.

Description

  1. Determine the strategic approach to business planning.
  2. Determine the strategic assumptions.
  3. Building a strategic planning model using financial data.
  4. Various strategic and tactical approaches to business planning.
  5. Determine the Decision Support Model: Assumptions/Objectives and Key Success Factors.
  1. The positives of budgeting.
  2. Budgeting process.
  3. Continuous budgets.
  4. Comprehensive budget.
  5. Capital and operational budgets.
  6. Estimated financial statements.
  7. Methods of budgeting:
    1. Additional budget.
    2. Zero budget.
    3. Flexible budget.
  8. Activity-based budgeting.
  9. Prediction tools.
  10. Direct and indirect costs.
  11. Characteristics of an effective budget.
  12. Budgeting problems.
  1. Budget as a control tool.
  2. Control process.
  3. Characteristics of an effective control system.
  4. Responsibility centers.
  5. Deviation Analysis: Determine the components of deviation.
  6. Deviation analysis: taking corrective action.
  1. The time value of money.
  2. Simple and compound interest.
  3. Identify and analyze cash flows.
  4. Discount rate: Use of the cost of capital.
  5. Net present value.
  6. Internal rate of return.
  7. Profitability index.
  8. Payback period.
  9. Accounting rate of return.
  10. Capital Expenditure Approval Form.
  11. Sensitivity and risk analysis.
  1. Data processing stages for the purposes of preparing budget estimates.
  2. Determine the basic factors governing the preparation of the budget.
  3. Determine data sources (internal – external – …).
  4. Characteristics of the collected data.
  5. The nature of the relationship between the data.
  6. Important tips when preparing budget estimates.
  7. Revenue forecasting methods.
  8. Expense forecasting methods.
  9. Using the method of analyzing the relationship between cost, volume and profitability (CVP) in determining the optimal size of activity.
  10. Using the method of sensitivity analysis in restructuring activity costs.
  11. Various practical cases.
  1. Sales balancing.
  2. Production balancing.
  3. Balancing wages.
  4. Activity balancing.
  5. Balancing salaries and benefits.
  6. Balancing tools and equipment.
  7. Balancing commodity requirements.
  1. The importance of its preparation and its relationship to other budgets.
  2. Methods of preparation and components.
  3. Liquidity management in the light of the cash budget and cases of technical and real financial hardship.
  4. Monetary indicators linked to the monetary budget (defensive period…).
  5. Various Practical Cases.
  6. Its importance – and its relationship to other budgets.
  7. Entrances to financing the investment budget.
  8. Components of the investment budget:
    1. New projects.
    2. Expansion and completion projects.
    3. Replacement and renewal projects.
  9. Forms for evaluating investment projects included in the budget.
  10. Practical Cases.
  1. Financial managers.
  2. Account managers and accountants involved in preparing budgets.
  3. Managers, supervisors, and analysts who prepare or use budgets.
  4. Heads of departments in the institutions concerned with planning, preparing and using the budget for the institution.