To ensure effective financial management of a department or and even the entire organisation, there is the need to prepare a realistic budget and ensure compliance with the approved budget. Furthermore, to ensure this compliance, operational costs need to be monitored and controlled so that as to ensure financial discipline. Effective Budgeting and Operational Cost Control training course will help participants to understand the main concepts and methodology around cost management and budgeting.
By the end of the course, participants will be able to:
- Apply the essential concepts of accounting, budgets and finance
- Apply the use of unit cost measurements in performance-based budgeting
- Maintain strategic cost control.
- Appreciate the importance of reducing unnecessary costs
- Identify appropriate outputs for an organizational unit or programme component
- Determine and apply the costs estimated...
- Use best practices to create written budget justifications
- Locate guidance on budgeting for capital assets, and integrate performance budgeting into your organization’s budget formulation process.
Introduction: Building a Common Financial Language
- Key role of budgeting and cost control in contemporary organisations
- The 21st century business imperative: delivering value added (but to whom?)
- Towards a cross-functional process-view of the organisation
- Financial vs. Managerial accounting (decision making)
- Understand your processes: integrating financial and non-financial aspects
- Identify the key processes/projects for your own organisation
Contributing effectively to Strategic Planning
- Budgeting and Cost analysis
- Cost concepts and terminology
- Different costs for different purposes
- Fixed Vs Variable costs: the Cost-Volume-Profit analysis model
- Contribution Margin analysis
- Manufacturing vs. non-manufacturing costs
- Period Vs. Product costs: inventory evaluation and control
Linking Budgeting and Forecasting into the Business’ Strategy
Traditional vs. Advanced Techniques in Cost-control
- Under-costing and over-costing: the consequences for profitability
- How to refine a costing system?
- Indirect (OH) Vs. Direct costs: Traditional Cost Allocations systems Vs. Activity-Based Costing (ABC)
- Cost hierarchy & Cost drivers
- Linking resources, activities and management
- Introducing Activity-Based Budgeting (ABB) and Management (ABM)
Preparing Rolling Forecasts
- Role of forecasts and the link to strategy
- Comparing and contrasting budgets and forecasts
- Identifying key business drivers
- The rolling forecast process
- Forecasting methods
Applying ‘best practice’ risk management and control in your area
- Role of risk management in corporate governance
- Finance’ role in supporting risk management
- Cost / Effective risk management in Finance’ own processes
Cutting costs and improving effectiveness
- Role of cost management in the business strategy
- Cost management and motivation
- Embedding cost control in the business
- Role of Finance in cost control
Beyond the Budgets: Balanced scorecards and Six-sigma
- Broadening performance measurement systems
- The key role of customer satisfaction and business process reengineering
- Beyond budgeting: integrating financial and non-financial issues
- Introducing the Balanced Scorecard
- Introducing the Strategy maps
This one week Effective Budgeting and Operational Cost Control training course is ideal for senior managers who manage budgets or managers who are currently managing projects and/or contracts. Senior managers who control cost and budgeting for their departments or organizations will also find this course extremely beneficial.
Venue to be announced shortly.