Budgetary control is the most widely used tool for planning and monitoring organizational activities. Importantly, the budgets are inextricably linked with both strategy formulation and cost analysis. For these reasons, it is crucial to interpret how costs behave so that realistic budgets and plans can be produced, and appropriate financial and non-financial resources can be made available to the business. Knowing some of the limitations of budgetary control, it is also imperative to complement and integrate the budgets with other organizational techniques, such as the balanced scorecard. Therefore, this course will allow you to explore the traditional tools of budgeting as well as new dynamic approaches which reflect and respond to the current complex and volatile business environment

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

·         Describe how budgeting relates to the planning and controlling functions of management.

·         Explain the relationship between budgeting and strategic planning.

·         Define chart of accounts, responsibility reporting, and flexible budgets.

·         List and describe the phases of budgeting.

·         Describe budgetary slack.

• The staff person who will be responsible for entering data into the budget system or training others how to enter information
• Those who want to gain control of the organization’s financial standing and obtain a firm grasp on the numbers side of their job
• Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals
• Anyone who wants to understand the basics of budgeting and costing.

The Information Content of Financial Statements:

·         Types of Assets

·         Types of Liabilities:

·         Owners' Equity

·         Reading the Balance Sheet:

·         Understanding the Income Statement

·         Profit and Loss Statement - P&L:

·         The Importance of Dividends:

·         What Is Working Capital?

·         Zooming in on Net Operating Income:

Financial Ratio Analysis

·         What do we want ratio analysis to tell us?

·         Users of Accounting Information

·         Brief Review of the Accounts

·         Gross Profit Margin

·         Net Profit Margin

·         Advanced Profitability

·         Return on Capital Employed Ratio

·         Return on Total Assets Ratio

·         Return on Capital Employed Revisited

·         Advanced Rate of Return

Financial Management Capability

·         Objectives of Financial Management

·         Elements of Financial Management

·         Defining Financial Management

·         Financial Management: Three Essential Elements

·         Principles of Financial Management

·         The Financial Management Capability Model

·         Structure of the Financial Management Capability Model

·         Mastering Key Process Areas

·         Mastering KPA's - The Building Blocks of Capability Levels

·         Establishing Financial Management Requirements

·         Linking Key Process Areas to Elements of Financial Management

·         Organization Control Environment

Flexible Budgets &Overhead Variance Analysis:

·         Analysis of Individual Cost Factors

·         Budget Process:

·         Static Budget:

·         Flexible Budget:

·         Flexible Budget Construction:

·         VFOH Variance:

·         Efficiency Variance:

·         Spending Variance means: Efficiency Variance means:

·         Analysis of Individual Cost Factors

·         Exploratory Cost Behavior Analysis

·         The Aggregate Cost Analysis Method

·         Flexible Budgets & Performance Evaluation:

·         Variance analysis

Capital Budgeting:

·         Capital Budgeting Versus Current Expenditures

·         The Classification of Investment Projects

·         The Economic Evaluation of Investment Proposals

·         The Internal Rate of Return (IRR)

·         The Timing of the Cash Flow

·         The Payback Period (PP)

·         The Accounting Rate of Return - (ARR)

·         Expectations of Inflation & the Effects of Inflation 

A variety of methodologies will be used during the course that includes:

·         (30%) Based on Case Studies

·         (30%) Techniques 

·         (30%) Role Play

·         (10%) Concepts

·         Pre-test and Post-test

·         Variety of Learning Methods

·         Lectures

·         Case Studies and Self Questionaires

·         Group Work

·         Discussion

·         Presentation

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Daily Course Timings:

    08:00 - 08:20       Morning Coffee / Tea

    08:20 - 10:00       First Session

    10:00 - 10:20       Coffee / Tea / Snacks

    10:20 - 12:20       Second Session

    12:20 - 13:30       Lunch Break & Prayer Break

    13:30 - 15:00       Last Session