By the end of the program, participants will be able to:

• What is the exact nature and scope of the issue to be analyzed?
• Which specific variables, relationships and trends are likely to be helpful in analyzing the issue?
• Are there possible ways to obtain a quick ballpark estimate of the likely result, and how precise an answer is necessary in relation to the importance of the issue itself?
• How reliable are the available data, and how is this uncertainty likely to affect the range of results?
• Should cash flow or accounting profit be used to evaluate the financial implications of a decision?
• What limitations are inherent in the tools to be applied and how will these affect the range of results obtained?
• How important are qualitative judgments in the context of the issue and what is the ranking of their significance?
• How do we interpret the financial impact of strategic decisions?
• How should we forecast and plan at a business level?
• How do we distinguish between different cost systems?
• How do we manage corporate budgeting, variance analyses and the monitoring of business performance?
• How do costs behave and how does activity based costing analysis help with an understanding of the problems of overhead allocation, decision-making and pricing strategies?
• Develop the appropriate techniques for effective budgeting as part of the planning process
• Design various budgeting models for all elements of a budget
• Explain the use of activity based budgeting, compared with other budgeting methods
• Develop and effectively control budgets
• Provide budgeting knowledge that can be shared for the benefit of your company

The Challenge of Financial/Economic Decision-making

• The Practice of Financial/Economic Analysis
• The Value Creating Company
• A Dynamic Perspective of Business
• The Nature of Financial Statements
• The Context of Financial Analysis

Assessment of Business Performance

• Ratio Analysis and Performance
• Management Point of View
• Owners Point of View
• Lenders Point of View
• Ratios as a System
• Integration of Financial Performance Analysis
• Some Special Issues

Projection of Financial Requirements

• Pro Forma Financial Statements
• Cash Budgets
• Operating Budgets
• Interrelationship of Financial Projections
• Financial Modeling
• Sensitivity Analysis
• Dynamics and Growth of the Business System
• Leverage
• Financial Growth Plans

Analysis of Investment Decisions

• Cash Flows and the Time Value of Money
• Components of Analysis
• Methods of Analysis
• Applying Time-Adjusted Measures
• Strategic Perspective
• Decisional Framework
• Refinements of Investment Analysis
• Dealing with Risk and Changing Circumstances
• Cost of Capital and Business Decisions
• Weighted Cost of Capital
• Cost of Capital and Return Standards

Valuation and Business Performance

• Definitions of Value
• Value to the Investor
• Business Valuation
• Managing for Shareholder Value
• Shareholder Value Creation in Perspective
• Evolution of Value-Based Methodologies
• Creating Value in Restructuring and Combinations

Strategic Planning for Setting Budgets

• Understanding what strategic planning is and why it is important
• Clarify the difference between vision, mission statement, goals and objectives
• The external environment: the need to understand the economic cycle
• SWOT and PESTEL analysis
• Tying the strategic plan to the budget

Financial Planning - Elements of Costing and Cost Strategies

• The nature and behaviour of costs, fixed, variable, semi-variable, direct and indirect costs
• Standard and actual costing: the difference
• Understanding overheads
• Calculating the variances at a detailed level to give real meaning to them
• Activity Based Costing
• Absorption and marginal costing
• Break even analysis: cost volume profit analysis

Strategic Planning

• Why strategy comes before the budget
• The strategic planning process
• Developing a strategic plan
• Strategic planning tools
• Where are we now, and where do we want to be?
• Linking the budget with the strategy

Forecasting

• What is forecasting?
• Strategic role of forecasting
• The forecasting process
• Forecasting demand
• Sales forecasting using various methods in Excel©
• Qualitative and Quantitative forecasting methods

Budgeting

• What is a budget
• Budgeting and the Management Process
• Budgeting framework
• How to evaluate budgeting software
• Budget preparation
• Building the master budget

Using a Budget as a Management Tool

• Linking strategic planning , forecasting budgeting and reporting
• Budget cost behaviour
• Budget cost, volume, profit and break-even analysis
• Sensitivity & What-If Analysis
• Budgetary Control
• Variance Analysis

Capital Budgeting

• Capital budgeting principles
• Raising finance
• Weighted Average Cost of Capital
• Methods of Evaluating Capital Investment Projects
• Comparing different projects and their returns
• Capital Rationing

All participants will be able to offer their input, based on their individual experiences and will find that the program provides a forum that gives an opportunity to consider new ideas and methods and for upgrading and enhancing their understanding of corporate finance and budgeting best practices.