Advanced Integration of Budgeting, Forecasting, and Business Planning

Introduction:

This seminar aims to enhance participants’ capabilities in business budgeting, financial forecasting, and business planning, setting new standards in these areas. It introduces innovative approaches and methods while reinforcing fundamental financial planning tools.

The Advanced Integration of Budgeting, Forecasting, and Business Planning course focuses on improving performance measurement, reporting, and shareholder wealth maximization. Participants will develop skills in capital budgeting, expense budgeting, profit target setting, cash flow management, and business activity forecasting.

By the end of this seminar, participants will have the skills needed for effective corporate budgeting and financial forecasting. This course is essential for both newcomers professionals looking to advance their expertise.

Professionals from various sectors will benefit from this seminar, gaining insights to enhance their organizational processes and strategies.

Objectives:

By the end of this Advanced Integration of Budgeting, Forecasting, and Business Planning, participants will:

• Design integrated planning, budgeting, and reporting processes.
• Enhance managerial and financial budgeting skills for effective decision-making.
• Understand cost behavior in detail.
• Provide timely and relevant information for decision-making.
• Define and use key costing and budgeting terminology.
• Improve management practices.
• Advance proficiency in forecasting and budgeting techniques.
• Address overhead challenges using activity-based decision-making and pricing.
• Contribute to effective change management.
• Eliminate non-value-adding activities and reduce operational costs.
• Understand cost behavior and trends.
• Develop robust business planning, budgeting, and management reporting processes suited to their organization.

Training Methodology:

• Workshops
• Case Studies
• Simulations
• Interactive Exercises
• Group Discussions
• Role Plays

Course Outline:

Unit 1: Budgets and Strategy in a Modern International Environment

• Organizational planning hierarchy.
• The product/information/correlation cycle.
• Strategic, tactical, and operational forecasting.
• The business planning process from a strategic perspective.
• Strategic and tactical business planning and administration.
• International business environment.

Unit 2: The Business Plan and Budget Development

• Communicating the business plan.
• Determining critical value drivers.
• Achieving goals.
• Zero-based budgeting.
• Activity-based budgeting.
• Roll-forward budgets.
• Preparation of the cash budget.

Unit 3: Applying Historical Data on Excel for Data Analysis

• Forecasting challenges.
• Importance of historical data in predictions.
• Forecasting assessment.
• Factors influencing sales volume.
• Building time series models: histograms, moving averages, exponential smoothing, and regression analysis.
• Using regression as a forecasting tool.
• Applications of exponential smoothing.

Unit 4: Wonder Techniques of Forecasting

• Understanding forecasting.
• Qualitative and quantitative forecasting methods.
• Smoothing processes.
• Regression and time series analysis.
• Forecasting growth rates and ensuring accuracy.
• Internal and sustainable growth rates.
• Using MIN, MAX, MEDIAN, MODE, and AVERAGE functions.
• Applying RANK, QUARTILE, and PERCENTILE.

Unit 5: Implementing Activity-Based Budgeting and Techniques in Costing

• Investigating cost behavior and breakeven analysis.
• Fundamentals of activity-based costing.
• Budgetary control from a functional perspective.
• Identifying cost drivers and essential activities.
• Setting up an activity-based budget.

Unit 6: Understanding Capital Budgeting and Appraisal of Projects

• Categories of capital projects.
• Capital project appraisal methods.
• Impact of time on money value.
• Comparing WACC and ROIC.
• Estimating capital project cash flows.
• Establishing the “Hurdle Rate” criterion for capital expenditure.
• Analyzing capital projects using NPV, IRR, and ARR Payback criteria.

Unit 7: Putting It All Together – Constructing The Integrated System

• Developing a planning model.
• Creating a forecasting model.
• Developing a budget model.
• Integrating print models.
• Optimizing capital structure.
• Strategies for bond repurchase.