Course Description

All business decision-making involves planning and budgeting situations containing varying degrees of risk. This course covers the essential skills required to understand the processes of budgeting and planning for better decision- making. From understanding the importance of a well-defined budget process through to the importance of realistic budgeting plans can be produced.

Course Objectives

• Understand the importance of a well-defined budget process.
• Master techniques for analysis of plans
• Learn how to construct profit, cash, and balance sheet plans and budgets.
• Learn how to evaluate variances from plan and identify corrective actions.
• Understand discounted cash flow (DCF) techniques and their application to financial decision making.
• Build and use budgets relevant to your organization.

Who Should Attend?

• Managers.
• Financial officers and planners.
• Auditors.
• Anyone interested and wanted to develop his performance in finance.

Course content

Day One

The need for Financial Control in business

• Understanding accounting
• Management accounting versus financial accounting
• The relationship between business management and financial management
• How budgeting fits into the bigger picture
• How cost management improves an organization’s financial position
• Key aspects of managing working capital

Day Two

Capital Budgeting and Investment Appraisal in Oil and Gas field

• The time value of money.
• Understanding Appraisal Techniques – Net Present Value (NPV), Internal Rate of Return (IRR) and Payback period.
• Selecting an appraisal technique.
• The use of Sensitivity analysis in evaluating projects.
• Strategic considerations in assessing capital projects.
• Creating an effective Capital Budgeting framework.
• Case studies related to participant.

Day three

Budget Construction and Control:

• Nature and purpose of budgets for planning and control
• Types of budgets and budgeting
• Creating Key Performance Indicators for financial and non-financial performance
• Building a budget
• Budgetary control and variance analysis
• Budgeting for non-financial measures -introducing the Balanced Scorecard

Day four

Budgeting: Flexible Budgets and Variance Analysis

• The role of budgeting
• Define the master budget and explain its major benefits to an
• Describe the difference between a static budget and a flexible
• Compute flexible-budget variances and sales-volume variances
• Discuss the behavioral implication of
• The budgeting process in your organization: how to improve it?
• Which tools shall we use to complement budgeting and costing?