Who should attend
The course is for non-financial and financial mid to upper level managers in every functional area and all industry sectors both in the public and private sectors. Managers from areas such as marketing, sales, and services finance, manufacturing, or engineering, which use financial data for decision-making. It is for other participants in a position to influence the design of their organizations’ planning, control, costing, and performance measurement systems. Managers in a position to influence the financial planning process of a company, emerging business, and/or business unit within a large organization
About the course
Executives are faced with ever-increasing challenges. Flatter corporate structures, global competition, overcapacity, downsizing, and changing business environments have placed enormous demands on managers, calling for greater management skills. Today’s executives wear multiple hats and need multiple skills. Even highly innovative and creative managers with excellent people skills must report and understand financial terms and concepts.
This course will provide the participants with a basic understanding of how to prepare a financial plan or budgeted financial statements. It will cover best practices in budgeting and the problems associated with budgeting and how to solve them. It will also enhance your ability to prepare, interpret and use financial information in your managerial decision-making. It has been designed to transform the non-financial and finance manager into a more effective team member who can propose, analyze and evaluate financial; planning and forecasting decisions. It does so by providing a fundamental understanding of the content, concepts, software models and terminology of financial planning and forecasting. These are reinforced with multiple questions and answers, discussions, group break-out sessions; excel template presentations, videos and exercises.
## Course Objectives
The Program is designed to help the participants:
Understand the principles of financial planning and forecasting and the practical problems and how to overcome them.
Understand how economic outcomes of business decisions are planned for and reflected in your organization’s financial reports.
Communicate more effectively with the financial executives in your organization.
Improve your financial vocabulary so that you are better able to understand and interpret financial information.
Increase your comprehension of current analytical financial planning and forecasting practices and techniques.
Learn to use financial forecasting information in managerial decision-making.
Discuss current financial problems.
Understand the impact of operating decisions on financial performance.
## Course Outline
Welcome & Introduction
The fundamentals of Financial Planning and Forecasting
What is a financial plan?
Why is planning an important concept in managing a business?
What is the difference between planning and forecasting?
Who is responsible for the financial planning function in the business?
Planning for costs and revenues
Why do business costs need controlling?
Uncontrollable costs – do they exist?
Who has the responsibility for cost management in the business?
Overview of the financial statements and how they interrelate
The Balance Sheet – the financial "snapshot" of the business
The Profit and Loss Statement. How can we project it out for 5 years?
What are the more important items you should look for?
What the financial statements will not disclose - how can we get behind the figures?
Exercise: An example of a financial plan
Forecasting and controlling revenues: sales and service income
How are sales revenues to be estimated – top down or bottom up?
Are there different approaches between manufacturing and service businesses?
Does market and field research have apart to play in this process?
Working Capital and its importance
What is working capital and what does it mean for business?
How much working capital does a business need in the future?
The importance of cash flow forecasting
Exercise: Cash flow
Forecasting materials usage in manufacturing and non-manufacturing businesses
Classifying materials used in manufacturing
Valuing materials and controlling stocks of materials
Managing Non-manufacturing material costs – indirect costs
Budgeting for materials and purchases – direct costs
Forecasting and budgeting direct and indirect labour costs
Planning labour costs both direct and indirect
Recording direct and indirect labour costs
Budgeting for direct and indirect labour costs
Forecasting and Budgeting direct & indirect expenses
Forecasting direct & indirect expenses
Types of expenses
Budgeting for direct and indirect expenses
Discussion & Individual exercises
Flexible budgets: concepts, development and application
What is flexible budgeting?
Use of sensitivity analysis
Importance of flexible budgeting in practice
Group & individual exercises
Budgeting and forecasting capital expenditures
Difference between capital and revenue expenditure
Organization of capital expenditure budget approval systems
Need for capital project monitoring
Discussion & review
Budgeting and controlling cash flows
- Turning budgeted sales revenues, costs and capital expenditure plans into a cash budget forecast
Completion procedures and applications of the overall profit plan or master budget
The financial planning and forecasting process as a control system within the business
The behavioral aspects of accounting control systems
Responsibility budgeting, accounting & control ideas
Zero based budgeting concept (ZBB)
Activity based management (ABM) and Activity based costing (ABC) defined
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.