Financial Budgeting and Forecasting

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?