Advanced Budgeting and Forecasting

June 21, 2018 9:00 am
June 22, 2018 5:00 pm
External Workshop (Melbourne)   View map

Revamping your financial roadmap: Conquering the unpredictable elements of budgeting and transforming your financial skills to deliver greater forecast accuracy and a more resilient bottom-line.

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Event Details

Revamping your financial roadmap: Conquering the unpredictable elements of budgeting and transforming your financial skills to deliver greater forecast accuracy and a more resilient bottom-line.

Course outcomes

  • Analysing and interpreting the financial data based on key ratio measurements and annual financial targets: Building a transparent and accountable financial culture
  • Integrating the budgeting process in-line with the development of the company’s long-term strategic business objectives
  • Applying qualitative and quantitative forecasting tools and techniques to evaluate and stay ahead of potential financial risks affecting your organisation
  • Designing a highly sensitive and flexible financial model using Excel based on financial and non-financial performance data
  • Rolling forecasts: Reacting to sudden market or operational shifts by linking your budgeting frameworks to key performance drivers and economic indicators
  • Reviewing your financial language: Providing greater visibility into existing financial resources and better cost controls to strengthen investor confidence
  • Optimising your operational and cash flow budgets by linking it to the overall financial analysis and reporting strategies within your company
  • Constructing costing models to determine the appropriate pricing strategies for your business using techniques such as transfer pricing, cost plus methods and life-cycle concepts.

Day One

Session One

  • Optimising Budgeting to Provide Greater Clarity to Critical Financial Documents
  • Consolidating budgets into robust financial statements using key measurement and
  • financial analysis tools:
    • Net Operating Profit After Tax (NOPAT)
    • Earnings Before Interest and Tax (EBIT)
    • Earnings Before Interest, Tax, Depreciation and Ammortisation (EBITDA)
    • Weighted Average Cost of Capital (WACC)
    • Debt and equity financing
  • Measuring the financial performance of the company by using key ratio measurements:
    • Return on Assets (ROA)
    • Return on Equity (ROE)
    • Return on Investment (ROI)
  • Assessing the balance sheet, profit and loss accounts: Is the budget in line with the target of the shareholders?

Session Two

Strategic Financial Planning: Positioning the Budget as a Critical Tool Within your Organisation’s Overall Vision

  • Analysing the impact of budgeting on organisational performance: Translating the organisation’s values into financial numbers and targets
  • Linking the budget to business objectives by minimising the presence of financial risks
  • Promoting accountability and detecting manipulation of financial figures on a spreadsheet:
    • Variance analysis to prevent financial discrepancies
    • Balanced-scorecard approach
  • Enforcing prudent management of financial resources and working capital

Session Three

Perfecting Financial Projections by Mastering Qualitative and Quantitative Forecasting Techniques

  • Leveraging historical data analysis using tools in the “Modern Excel”
  • Developing efficient and accurate quantitative forecasting:
    • Graphical analysis
    • Numerical analysis
    • Regression analysis and financial adjustments
  • Outlining the differences and value of the following budgeting methods:
    • Activity based budgeting and forecasting
    • Value based budgeting
    • Zero based budgeting
    • Target costing

Session Four

Testing Existing Financial and Budgeting Model Variables Using Sensitivity and Scenario Analysis to Reduce Possible Future Risks

  • Pinpointing the differences between scenarios and sensitivities: Which variable has the largest impact on your model’s accuracy?
  • Multi-currency budgeting: Converting financial data across different departments into a single reporting framework
  • Stress-testing and validating your budget model integrity: Performing a “what-if” and sensitivity analysis
  • Spearheading an effective scenario-building and financial management framework:
    • Maximising the use of scenario modelling in Excel
    • Free form scenario management with sensitivity analysis
    • Data tables
    • Normal distribution and simulation models

Session Five

Upgrading your Financial Forecast: Extracting the Right Data by Comparing Business Trends and Market Cycles

  • Recognising patterns in financial data by using Regression Analysis as a predictor and estimator
  • Reinforcing the necessity to apply a range of different forecasting methods:
    • Qualitative models
    • Market research
    • Time Series methods
  • Integrating fluctuating interest rates and inflation levels using sound forecasting methods

Practical Exercise
Delegates will be required to forecast a sales cycle in Excel based on historical data by
calculating the seasonality index and adjusting the forecast accordingly

Day Two

Session One

Implementing a More Flexible Budgeting Framework: Moving from Traditional Budgeting to Beyond Budgeting

  • Transitioning from a static budget to a fluid budget by sharpening the budget’s flexibility to the changes in the external business environment
  • Appraising different budgeting methods that best suits your organisations’ goals and financial targets
    • Rolling budgets: Instilling stronger long-term budgeting targets by analysing industry fluctuations that could affect costs in the long run

Session Two

Transforming the Budget Into a More Practical and Dynamic Financial Tool

  • Assessing the roles of various budgets and the impact on fixed and variable costs:
    • Short-term model
    • Long-term model
  • Detecting the main financial drivers governing your budgeting process:
    • Industry forecasts
    • Growth rates
    • Market share
  • Creating a model for “Step Costs”
  • Calculating your break-even margin using “Goal-Seek”
  • Building the budget around existing financial expenditures and resources:
    • Capital expenditure (CAPEX): Fixed assets and working capital
    • Financing sources (Equity and debt)

Practical Exercise
Creating a model in Excel which will calculate volume-dependent “Step Costs”.
Calculating the break-even point using “Goal-Seek”

Session Three

Strengthening your Budget Reporting and Equipping Financial Practitioners with the Right Decision-Making Skills

  • Navigating the different financial languages: Financial Accounting versus Management Accounting
  • Budgeting “soft skills”: Utilising the right techniques to achieve buy-in from stakeholders and investors
  • Collaborating the involvement of different departments in the budgeting and forecasting process: Managing conflicting priorities and demands

Session Four

Adopting Cost Reduction Methods to Increase Competitive Advantage

  • Recognising the importance of an effective cost control and cost reduction regime
  • Comparison of estimated cost and approved budget cost
  • Comprehending the influence of management style on cost management
  • Determining the “cost” of a product by selecting the right costing model:
    • Marginal costing
    • Full costing with different overhead allocation bases
    • Activity-based allocation of overheads
    • Standard costing
  • Categorising the different forms of cost:
    • Fixed, variable and semi-variable
    • Clarifying the impact of fixed and variable costs on volumes and profitability
    • Determining the cost per unit, break-even point and margin of safety
  • Examining pricing decisions and solutions:
    • Cost plus methods
    • Transfer pricing
    • Life-cycle concepts

Why you should attend

Your planning, budgeting and forecasting process does not have to be a time consuming and low-value added task to the overall strategic framework of the organisation. It can be a great tool to deliver an integrated business planning solution that links operational and finance processes by providing executive decision support and allocating the right resources in tracking and projecting
accurate cash flow. The demands placed on high-level finance professionals are at an all time high with greater market competition and shrinking profit margins.

What is the financial leverage of your core business drivers and how do you obtain and provide the right financial data to stakeholders? To survive and thrive in the ever-changing and global marketplace, financial managers must go beyond the traditional budgeting and forecasting concepts.
The rising costs due to unplanned expenditures and the volatility of the external environment ensures that it is crucial for companies to map out specific plans for optimising the costs to be incurred within a specific time frame by monitoring their cash flow movements, fund utilisation activities and “stresstesting” their core business drivers. This dynamic and interactive training will be
the perfect platform to get your company ahead of its competitors by providing an in-depth insight into the essential tools and skills needed to build worldclass financial practices.

This course is being delivered by Danielle Stein Fairhurst from Plum Soutions but the event is hosted by an external provider.  Please register by clicking the orange “Join this event” button above and we will send you some further information from the organiser.


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