Budget Analysis and Forecasting Training


To achieve excellence, planning is crucial! Budgeting and forecasting are part of a successful planning process that is driven to achieve the goals of your organisation. This training session builds on good practice with case studies based on real case corporate scenarios.

This course is designed keeping in view – that many professionals are responsible for budgets & forecasts, but never took any courses to learn the fundamental principles of budgeting and forecasting.

This hands-on intensive course target professionals from finance as well as non-financial background, who need to understand the fundamental budgeting principles and forecasting methods, budget process, and want to improve their financial literacy.

Course Outline

Can you survive and thrive without a budget?

  • Background
  • Budget and business plan
  • Budget and forecast
  • Budget and the business strategy
  • Budgeting process
  • The planning cycle
  • Potential problems

How do you build a budget in a climate of uncertainty?

  • Developing from operational budgets to financial budgets
  • Process/steps
  • Types of budgets : Fixed , Flexed,  Rolling
  • Methods of budgeting : Incremental Vs Zero based budgeting

Budget & Forecast – Key to optimization

  • Approaches to budgeting : – Top down – Bottom up – Iterative
  • Planning programming budgeting system
  • Behavioural aspects in budgeting
  • Forecasting versus budgeting

Master Budgets – from A to Z

  • Process flow of an organization
  • Anticipating and budgeting for revenues
  • Estimating expenditure
  • Understanding costs
  • Operational budgets
  • Sales – Production – Raw Materials – Labour
  • Financial budgets
  • Statement of financial Performance – financial Position – Cash flows

Cash Budgeting – no cash no budget!

  • Myth of “Profit”
  • Cash Flow Versus Profit
  • Cash Conversion Cycle
  • Managing Surplus
  • Operating , Investing  &  Financing Activities
  • Analysing Business Performance Using Cash Flow Statement

Capital Budgeting – have you looked at all the feasible options?

  • Incorporating capital investment decisions into the budget and planning process
  • Capital investment evaluation techniques
  • Importance of Cost of Capital
  • Payback period
  • Net present value
  • Internal Rate of Return
  • What to rely NRV or IRR

Controlling and monitoring a budget, is it worthwhile?

  • Analyzing discrepancies
  • Variance analysis
  • Analyzing budget errors
  • Investigating unexpected variances
  • Making necessary adjustments
  • Lessons learned

Budgeting – an effective tool for performance management?

  • Managing financial performance at corporate level
  • Financial statements ( Statement of Position; Income Statement; Cash flow statement)
  • Ratio analysis using financial statements
  • Profitability
  • Liquidity
  • Gearing
  • Investor ratios

Managing performance at division level

  • Divisionalisation
  • Controllable profits/Investment Centre
  • Return on Investment (ROI)
  • Residual Income
  • ROI vs. Residual Income
  • Consolidation of knowledge acquired
  • Application in practice
  • Candidates’ views
  • Key messages

Read our blog on How To Perform a Budget Analysis and Forecasting