Course objectives

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

Evaluate the budgeting process in their organizations and recommend improvements

Create budget templates and models for their departments or organizations

Apply several forecasting techniques to better manage uncertainties in budgeting

Evaluate capital budgeting decisions using several methods and recommend proper action

Utilize Microsoft Excel functions and tools in the budgeting process including breakeven analysis and optimization

Appreciate the importance of effective budget preparation and financial planning

Understand various sources of finance with their utilization, based on the cost of capital

Take sound investment decisions based on proper appraisal

Obtain an overview of the financial statements and management reports to evaluate the company’s performance

Understand the concepts of ratio/ horizontal/ vertical analyses

Prepare competitor analysis, market trends, and related explanations for top-level discussions

Understand cost behavior and its effect on financial planning

Provide detailed analysis and observations on the results of individual business units

Understand various types of budgets and use the one most suited to the organization

Use financial modeling to forecast the profitability and cash flows with sensible assumptions

Understand the different components of working capital and reduce the operating cycle

Get equipped to manage and control budgets and forward plans

Understand the best practice of financial planning and management

Target competencies

Budget Process and Management

Preparation of Master Budget

Fixed v/s Flexible Budgets

Quarterly Reviews

Forward Planning

Budget/ Actual Comparison

Zero Based Budgets

Budget Statements

Balance Sheet

Profit & Loss Statement

Statement of Cash Flow

Budget Assumptions

Accompanying Notes

Sources of finance

Equity and Debt Financing

Gearing Ratios

Cost of Capital

Weighted Average Cost of Capital

Decisions regarding Dividend Payments

Capital Expenditure 

Capital Investment Appraisal

Retu on Investment

Payback Period

Net Present Value

Inteal Rate of Retu

Lease or Buy Decisions

Tax Implications thereof

Working Capital Control 

Inventory Control

Accounts Receivable

Accounts Payable

Reconciliation of Sub-ledgers

Other Current Assets & Current Liabilities

Tax and Deferred Taxation

Cost Accounting

Total Absorption Costing

Marginal Costing

Contribution Margin

Break-even Analysis

Sensitivity Analysis

Comparison with Actuals  

Ratio Analysis

Vertical Balance Sheet & P&L Statement

Horizontal Balance Sheet & P&L Statement

Variance Analysis

Price Variance

Quantity Variance

Mix Variance