Building Effective Budgets
This course is aimed at existing or new budget holders, cost centre managers, and those who manage event or department budgets. This course gives attendees the skills to manage budgets, monitor costs and apportion expenses on an appropriate basis. This will reduce the time taken to produce and manage your budget.
On completion of this course, attendees will be able to: Use a structured approach to prepare a budget; Review the benefits and drawbacks of different budgeting methods; Know when to use each approach; Understand how to budget for expenditure; Evaluate unbudgeted opportunities; Budget appropriately for risk and defend budgeted contingencies; Budget and plan for stock ordering; Manage financial performance, understanding variances and taking action to achieve your budget and objectives; Manage costs in seasonal or cyclical businesses.
- - What are budgets and do we really need to use them?
- - Understand the strategic corporate goals.
- - Overview of the budget cycle.
- - Recognise initial assumptions and limiting factors.
- - Know where to find information that might be needed.
- - What events and occurrences do we need to consider? Internal, external, definite and uncertain before including potential income and expenditure.
- - Understand the nature and behaviour of costs.
- - Use the appropriate costing method and understanding it’s relevance to decision making and budgeting.
- - Stock forecasting, costing and ordering.
- - Apportioning overheads.
- - Recognise risk and contingencies.
- - Break-even analysis.
- - Is the finished budget achievable?
- - Understand the corporate need to proactively work towards budget and adhere to budget.
- - Identify the variances and understanding why are they important?
- - Compare monthly and year-to-date variances.
- - Why this is important?
- - Do high profits necessarily mean everything is going well?
- - Give clear information.
- - Present the main variables.
- - Get stakeholders to recognise their role in achieving the strategic goal within the agreed budget.