Finance On-Line Curriculum
Introduction to Budgeting: Context and Purpose of Budgeting
Budgeting is perhaps one of the most time-consuming process undertaken by managers. As companies are under continuous pressure to improve performance, it is imperative that managers have a good understanding of how to carry out their budgeting and how it fits within the objectives of their organization. This training course presents the information needed in a clear, concise and logical manner.
After this course the student should be able to:
- Explain why an organization needs to plan.
- Define the three tiered decision-making process which enables an organization to achieve its stated mission.
- Differentiate between strategic planning and budgeting.
- Outline the purpose of budgeting within the overall planning process.
- Describe the two main types of budget.
- State what is meant by an external driver and give examples.
- Identify the three areas which need to be considered when undertaking a strategic analysis of the organization.
- Explain how effective budgetary planning can increase the performance of your company.
- Describe the value chain.
- Describe the stages in preparing a budget.
- Explain the budget approval process.
- Explain the compilation of master budgets.
- Show the importance of budgetary control.
- Explain the methods of budgetary control.
- Explain performance monitoring and measurement in budget implementation.
- State the basic requirements for revenue budgeting administration.
- Give an overview of the preparation of the different revenue budgets.
- Explain the reasons for capital budgeting.
- Explain the uses of capital budgeting.
- Outline the techniques of capital investment appraisal.
- Explain the importance of incorporating risk into the capital investment decision.
- Prepare an Income Statement.
- Prepare a budgeted Balance Sheet.
- Prepare a cash budget.
- Explain the importance of good planning.
- Explain cost behaviour in performance measurement.
- Explain variance analysis and interpretative techniques.
- Explain Give an overview of the consequences that flow from performance analysis and implementation.
This course is designed for managers, prospective managers, and anyone else within an organization involved in making business decisions.