Budgeting and Cost Control Training Course in Dubai, UAE

Course overview

The knowledge of accounting principles is crucial in today’s intense business world where competition is extremely severe. The understanding of the financial aspects of a business, efficient budgeting and cost control skills are vital for any successful enterprise. Budgeting is fundamental for providing a focus for operations, financial statement analysis, keeping operations on track, and communications with internal and external stakeholders. Budgeting is the method by which we translate the strategic ambitions of the business into financial and operational annual business plans. Therefore the knowledge of basic accounting concepts and principles is a must.

After considering various types of budgeting approaches, you’ll learn how to form for each component of the master budget. In this way, you’ll build a simple budgeted P&L, Cash Flow Statement, and Balance Sheet for 12 months in the budget, taking Working Capital conditions and finance requirements into account. You will see the connections and inter-dependencies between the three financial statements. Also, you’ll learn how to perform the standard Investment Appraisal (ROI) techniques in Excel and how to carry out income statement analysis. This course is very hands-on. For each section of the course, once you learn the structure and approach, you will perform quick exercises and quizzes.

This course on standard costing and budgetary control has a variety of benefits and positive outcomes for participants, such as:

• Realize the importance of budgeting, and it relates to strategy and business planning
• Master such components as revenue, production, operating expenses, and CAPEX
• Formulate the components of the budget into the three financial statements
• Develop and enhance the skills to perform the process in Excel
• Consider the basics of incremental budgeting and zero-based budgeting
• The ability to use Investment Appraisal techniques (ROI) to evaluate investment decisions

Who Should Attend

• Project Managers
• Contract Managers
• Operations Managers
• Finance Business Partners
• Auditors and Internal Control
• Risk and Compliance Regulators
• Accountants and Consultants
• Financial Planning & Control Staff
• Managers who manage budgets and control costs for their departments/organizations.

What will you gain

• Become a professional who is capable of creating efficient budgeting
• Be able to take cost control of your organization to the next level of efficiency
• Connect your budgeting approach with your business strategy seamlessly
• Learn how to perform revenue budgeting by month, product, and price
• Deal with operating expenses and be able to see able the gaps in different expenses
• Know in detail about CAPEX budgeting and how it can benefit your organization
• Create cash flow budgeting considering investment and financing activities
• Create the budgeted Balance Sheet in Excel using debt as the balancing plug
• Master variance analysis and successfully use it an efficient tool of controlling
• Improve the skills to perform the budgeting process in Excel with excellence
• Understand the whole structure of budgeting and the best tools to control it

Course content

• The relationship between strategy, planning, budgeting, controlling, and variance analysis
• Budgeting as a planning tool
• How to incorporate business plans and business initiatives into the budget
• How the budget represents the strategy and business plan for the year
• Further motivations for and advantages of budgeting
• The proper relationship between the budgeting office and operations in the budgeting process
  • Roles and responsibilities of operations and finance
  • Who owns the budget?
• Budgeting approaches
  • Incremental budgeting
  • Zero-based budgeting
  • Bottom-up budgeting
  • Top-down budgeting
• The components of an effective budgeting process
  • The steps in the budgeting process
  • Information flow in the budgeting process
• The components of the master budget
• Revenue budgeting
  • By month
  • By product
  • By price
• Manufacturing or production budgeting (Cost of Goods Sold)
  • Variable expenses
  • Manufacturing overhead expenses
• Operating expenses
  • Sales and Marketing expenses
  • General & Administration expenses
  • Depreciation
  • Provisions (bad debt, warranties)
• Allocation of overheads to the operations
• Budgeting for initiatives and special projects
• Budgeting for contingencies
• CAPEX budgeting
  • Replacement assets
  • New investments/assets
  • Updating the depreciation schedule
• Cash Flow Budgeting
  • Operating Cash Flow
  • Cash flow from investment activities
  • Cash flow from financing activities
• Creating a budgeted P&L in Excel
  • Building a flex-budget
  • Incorporating new business initiatives
  • Using vertical ratios and KPIs in the budget
• Creating the budgeted Balance Sheet in Excel
  • Deriving the Working Capital components from the P&L and DSO/DPO
  • Deriving Assets from depreciation and the CAPEX budget
  • Incorporating finance requirements
  • Using debt as the balancing plug
• Creating the budgeted cash flow statement in Excel
  • Using historical debtor days (Days Sales Outstanding-DSO)
  • Using historical creditor days (Days Payable Outstanding - DPO)
  • Entering fixed expenses
  • Entering variable expenses
  • Incorporating CAPEX
  • Determining finance requirements
• Cost control
  • The role and function of controlling
  • Discipline
  • Information for analysis
  • Investigating variances
• Variance analysis
  • A monthly tool for operations managers
  • As a tool of controlling
  • Breaking variance down
  • Variance analysis for business unit managers
  • How to create variance reports in Excel: formulas, formatting and conditional formatting
• Investment Appraisal for capital budgeting and business expansion (ROI – Return on Investment)
  • What is investment appraisal?
  • Determining the investing cash flows
  • The first filter: Payback Period
  • The time value of money
  • Understanding the cost of capital, including “discount rate”, “WACC”, etc.
  • Deciding the required/targeted rate of return (WACC)
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • NPV and IRR calculations in Excel
  • Sometimes we invest despite a poor ROI!