The Basics of Budgeting

Overview/Description
 In this course well-known public accountant, college professor, and veteran trainer, Fred Moore, guides the learner through the basics of the budgeting process. The course helps the learner understand the elements of a workable budget, and the common afflictions that often hamper the budgeting process. The course familiarizes the learner with the basic principles of capital budgeting, and the components of cash flow. It also shows how one needs to anticipate and react to changing financial forces, before they bungle a budget.

Target Audience
 Every manager with budgeting or capital investment evaluation responsibilities.

Expected Duration
4.5 hours

Lesson Objectives:

Essential Elements of a Successful Budget

  • recognize the significance of understanding the essential elements of a budget.
  • select the likely causes of a budget failing, given a particular business scenario.
  • identify the missing ingredient of an unsuccessful budget.
  • derive valid budget assumptions by feeling the given forces.
  • identify how cash flow control is relevant to four stages of establishing and running a business.
  • identify why net income and cash balance are unequal in a particular business situation.

    • Components of Cash Flow

  • appreciate the benefits of understanding the components of cash flow.
  • compute values for the components of the accounting equation given the basic financial data for a business.
  • select the resource-raising strategy appropriate for a given source of cash.
  • identify the source of cash that would be affected by a given set of factors.
  • classify the given business expenses into appropriate budget categories.
  • recall the consequences of inadequate cash flow in a given business scenario.

    • Course Number: FIN0261