Basics of Budgeting
Overview/Description
Running a department without understanding the budget process is like driving a car without knowing how to steer. Every manager needs a basic understanding of how to plan, use, and monitor adherence to a budget. Addressing the needs of your own budget process will help you support the financial processes and goals of your organization as a whole.
In this course, non-financial managers will learn the concepts and techniques vital to the budget process, including: forecasting revenue and expenses; choosing the best kind of budget strategy, and progressively measuring the success of your plan through the use of variance reports.
Target
Audience
Non-financial managers who seek an introduction to budgeting
Expected
Duration
3.5 hours
Lesson
Objectives:
Budget Preparation Activities
recognize the value of adhering to an effective budgeting process in business.
match budget process activities with examples.
complete the preliminary activities to establish budget objectives for a hypothetical department.
The Budgeting Process
recognize the benefits of using a methodical budget process.
match two budget approaches with advantages and disadvantages.
implement the most favorable budget approach for a given business scenario.
complete procedures to prepare a departmental budget that supports hypothetical company financial goals.
match budget components with examples.
identify elements used to forecast revenue and expense.
forecast profit or loss given hypothetical company budget components.
Monitoring Adherence to Budgets
recognize the importance of monitoring adherence to budgets.
identify the principles of effective variance report use.
improve monitoring of budget adherence by using variance reports in a hypothetical business scenario.
match techniques for addressing revenue variances with examples.
apply appropriate techniques for addressing revenue variances to hypothetical business situations.
Course Number: FIN0152