Forecasting and Budgeting

An Accounting and Finance Course

*This course can be tailored or customized to your specific needs.

Course Overview

Learn how to avoid common budgeting pitfalls in this seminar on forecasting for non-financial managers. Armed with tools to forecast revenue and resource needs, participants learn the advantages of various budget types used in business today and identify procedures for variance analysis, monitoring, and budget adherence. Learn how to gain the knowledge and confidence you need to build and manage budgets and forecast financial information.

Objectives

  1. Link the forecast to the strategic plan
  2. Plan for the short-term and long-term
  3. Identify variables and assumptions that impact revenues and expenditures
  4. Identify drivers of performance results and measuring performance

Lesson 1: Building a Budget

  • Examine differing types of budgets
  • Build from past performance
  • Fixed vs. Variable costs
  • Understand why actual results differ from those that were originally expected

Lesson 2: The Science of Forecasting

  • Forecasts as a rolling estimate
  • Utilize historical data to forecast
  • Adjust your forecast due to variances
  • Compare monthly accounts vs. budgets/forecasts

Lesson 3: Preparation for the Short-Term and Long-Term Budgets

  • Prepare different versions of your budget based on different scenarios
  • Identify short and long-term costs/investments
  • Design short and long-term budgeting strategies

Lesson 4: Budgets and Forecasts as a Risk Management Tool

  • Review your budgets and forecasts against your actual financial results
  • Ensure your profit and loss, balance sheet and cash flows are fully integrated and reconciled
  • Challenge your assumptions (or have someone else do it)