This training programme will enable the delegates to acknowledge the significant areas of planning and control in financial management i.e., financial analysis, controlling and setting budgets.

Who Should Attend?

Personnel who can attend this course are:
Business professionals who are willing to understand the financial aspects of the strategic decision-making process.

Course Objectives

This training programme will enable the delegates to:

• Acquire the knowledge about budgeting and costing terminologies used in businesses
• Acknowledge strategic budgeting and planning
• Acknowledge the significance of a well-defined budgeting and costing process
• Acknowledge the cost behavior more efficiently and accurately
• Acquire the knowledge to build a performance measurement system at a comprehensive level
• Associate operations and finance for strategy execution and budgeting purposes

Course Outline

Module I

• Introduction to Financial Analysis, Planning and Control
• Financial Economic Decision-Making: The challenge
• Financial/economic analysis practice
• Understanding the value-creating company
• Shareholder and corporate value
• Business: A dynamic perspective
• Corporate governance and the agency problem
• Description: What information and data to use?
• Financial statements: Nature
• Financial analysis and decision-making: Context

Module II

• Business Performance: Performance
• Business performance and ratio analysis
• Understanding Management’s point of view
• Description: Owners’ point of view
• Description: Lenders’ point of view
• Pyramids of ratios: Ratio as a system
• Financial performance analysis: Integration
• Introduction to Economic value added (EVA)
• Financial distress: Prediction

Module III

• Financial Requirements: Projection
• Financial projections: Inter-relationship
• The overview of Operating budgets
• Variance analysis and standard costing
• Cash budgets and cash forecasts
• Understanding Sensitivity analysis
• Growth and dynamics of the business system
• Description: Operating leverage
• Analyzing Financial growth plans
• Overview of Financial modelling

Module IV

• Investment Decisions: Analysis
• Time-adjusted measures: Application
• Internal rate of return (IRR) and net present value (NPV)
• Understanding the Strategic perspective
• NPV and EVA
• Investment analysis: Refinements
• Introduction: Equivalent annual cost (EAC)
• Introduction: Modified internal rate of return (MIRR)
• Understanding Sensitivity analysis, scenario analysis, simulation and NPV break-even
• The concept of Dealing with risk and changing circumstances

Module V

• Business Performance and valuation
• The concept of Managing for shareholder value
• Description: Shareholder value creation in perspective
• Value-based methodologies: Evolution
• The concept of Creating value in restructuring and combinations
• Understanding Financial strategy in acquisitions
• An overview: Business valuation
• Description: Business reorganizations and restructuring
• Overview of Management buy ins (MBIs) and Management buy outs (MBOs)

Module VI

• Overview of Setting and Controlling Budgets
• Introduction to Financial and Strategic Planning
• Introduction and overview of management accounting and Financial accounting
• Association between budget setting, strategic planning and performance measurement
• Introduction to strategic and planning management
• Overview of Mission, vision and objectives
• Description of the planning process
• Overview of External environment analysis, internal resources analysis, PESTEL and SWOT
• Shareholder wealth maximization, financial strategy and value creation
• Understanding Long-term and short-term financing, financial planning and modelling

Module VII

• Budgeting: Cost Analysis
• Costing: Definition
• Fixed costs and variable costs: Cost behavior
• Understanding cost/volume/profit (CVP) analysis, contribution and break-even models
• Overview: Non-traceable and traceable cost allocation
• The concept of period costs and product costs
• Understanding absorption costing, marginal costing, direct costs and indirect costs
• Analysis of Product costing for budgetary control, performance measurement and budget setting
• The costing system and activity-based costing (ABC): Refinement

Module VIII

• Budgeting: Framework
• Budget: Definition
• Distinct Types of budgets and Budgeting framework
• Understanding the budget process
• Forecasting sales, costs and sales pricing: Qualitative and Quantitative techniques
• Labour costs and depreciation: Budgeting
• Description: The departmental budget
• Master budget and the cash forecast/budget: Preparation
• Budgeting: The human side and the behavioral aspects

Module IX

• Understanding Capital Budgeting, Activity based budgeting (ABB), Variance analysis and Budgetary control
• Budget controlling process in your organization
• Introduction to Activity-based budgeting (ABB)
• Capital projects budgeting
• Understanding Discounted cash flow (DCF) investment appraisal methods of internal rate of return and net present value (NPV)

Module X

• Overview of the profitability index (PI) and capital rationing
• Responsibility accounting and budgetary control systems
• Budgeting and budgetary control: The standard costing
• The concept of flexed budgets, fixed budgets, variance analysis and the reasons for variances

Module XI

• Broadening Performance Measurement Systems: Beyond budgeting
• Integrating continuous improvement into the budget process
• Budgeting: Advantages and disadvantages
• Ways to improve the budget process in your organisation
• Understanding the conflict between the costing system and performance improvement
• Description: Performance improvement and lean thinking
• Beyond the budget: What’s next?
• Associating strategy with performance measurement and budgeting: The balance scorecard
• Adapting and developing the balanced scorecard
• Summary

General Notes

• All our courses can be facilitated as Customized In-House Training course.
• Course duration is flexible and the contents can be modified to fit any number of days.
• As for Open Enrolment Courses, we offer our clients the flexibility to chose the location, date, and time and our team of experts who are spread around the globe will assist in facilitating the course.
• The course fee includes facilitation, training materials, 2 coffee breaks, buffet lunch and a Certificate of successful completion of Training.
• FREE Consultation and Coaching provided during and after the course.