Budget Preparation Techniques

Budget Preparation Techniques

OBJECTIVES:

The specific objects of this course will be to give participants:

1. A comprehensive understanding of the role of budgeting in the planning and control process of the business,
2. A working familiarity with the foundation building blocks required prior to preparing the budget,
3. A detailed understanding and familiarity with the techniques of budgeting for income, expenses, cash flow, profit & loss and balance sheet.
4. A working knowledge of the techniques of analyzing variances between actual results and budgets, including sales volume, price and mix variances; labour variances; material quantity and price variances; overhead variances.
5. A comprehensive understanding of the forms and procedures involved in the budgeting process
6. An introduction to the subjects of budget modeling and capital budgeting.

Course Outline:

This course on Budget Preparation Techniques will examine:

• Advantages of budgeting and budgetary control;
• The concept of control;
• Elements of a control system;
• Setting the goals and objectives to be achieved;
• Types of budgets prepared;
• Setting the budget assumptions;
• Zero based budgeting;
• Budget preparation, review and approval process;
• Operating budgets and capital budgets
• Monitoring actual performance;
• Budget variance analysis and comparing actual with budget;
• Flexible budgeting