B6: Advanced Budgeting and Forecasting (3 days)

Learn how to build sophisticated budgets and forecasts that are robust, flexible and user-friendly

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Pre-requisites

Although not mandatory, attendees will get a lot more out this course if they complete some online training in Excel functions before attending.

We have partnered with Excel University to provide high-quality, low-cost online training and recommend their Volume 2 Course as good preparation for this course.  If attendees are a little less familiar with Excel, Volume 1 would also very useful.

What you get from this course

  • Discover a range of techniques to improve the usability and reliability of your budget and forecast models
  • Learn how to integrate budgeting and forecasting and align these processes with your business strategy
  • Create forecasts that properly incorporate imprecise data and allow for uncertainties
  • Gain the confidence that comes from knowing that your budgets and forecasts are robust, accurate, and reliable

Examine and learn the following: 

  • The need for change: global forces driving companies to update their budgeting and forecasting processes
  • How to allow for uncertainty
  • Why distinguishing between targets and forecasts is critical to success
  • Most applicable types of budgets/ forecasts for each area of the business
  • How to improve the reliability of forecasts whilst also decreasing the time taken to prepare these
  • Alternate budget methodologies and how to determine which methodology applies best in different situations
  • How to optimise budgets & forecasts to achieve maximum efficiency within given constraints.

Key learning outcomes

  • Understand the role of budgeting and forecasting within the enterprise.
  • Learn how to integrate budgeting and forecasting and align these with your business strategy.
  • Learn how to handle uncertainty within budget models.
  • Learn how your organisation can become more agile and produce more accurate forecasts faster.
  • Understand how and when to go beyond Excel for budgeting and forecasting solutions, and understand the enterprise-level technologies that can enable this to occur.

Objectives 

  • To provide an introduction to Budgeting and Forecasting framework within the enterprise: how this can be used to improve performance and gain a competitive advantage.
  • To provide an understanding of the budgeting and forecasting best practices that are being used in today’s companies.
  • To enable managers to understand the budgets and forecasts that are prepared for them.

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Agenda Highlights

Recent events have caused many companies to re-examine the budgeting and forecasting models they use in their decision making processes to ensure they are up-to-date and incorporate the latest in budgeting and forecasting best practices.

Furthermore, many organisations see the current economic situation as an opportunity to expand their businesses by taking advantage of weaker competitors. To support all these decisions, sound budgeting and forecasting is essential.

This course provides delegates with an understanding of both the principles of budgeting and forecasting and the practical application of these to real-world situations through the use of Excel.

The course then builds upon the principles and practices learned to apply these to build sophisticated budgets and forecasts that are robust, flexible and user-friendly.

Day 1: Introduction to Budgeting

Introduction
– What is budgeting?
– Who reads a budget?
– Why do organisations make a budget?
– Steps in creating a budget
– Parts of a budget

Activities:
– Group discussions & activities

The Budgeting Process
– Budgeting in large companies
– Budgeting in small/medium companies
– Role of the budget in corporate governance
– Sources of information

Activities:
– Group discussions & activities

Building the Budget
– Where to start?
– Key accounting concepts
– Forecasting revenue
– Types of costs

Activities:
– Building a revenue forecast
– Building an expense forecast
– Assessing a budget
– Comparing scenarios

Presenting the Budget
– Tips on presenting the budget that help the audience understand your budget and your message

Activity:
Role play budget presentation

Day 2: Developing the Budget Model

Budgeting & Forecasting Re-cap
Overview of the budgeting process and model considerations:
– Types of budget models
– Short-term & long-term models
– Model design & planning
– Best practice design guidelines
– Budgeting vs forecasting

Activity: Identify Improvements
Attendees will work as a group to apply the knowledge learned to identify improvements to an existing model.

Planning the Model
a Compare and contrast the different budgeting methods. Determine which model is best suited to various applications.
– Top down vs bottom up budget models
– Model development framework
– Zero-Based Budgeting & cost drivers
– Rolling (dynamic) Budgets
– Building flexibility into time series analysis
– Cash Budgeting
– Determination of Model and Forecast scope and time horizons

Activity: Excel Refresher
A recap of the most useful Excel functions used in building budgets and forecasts

Case Study: Identifying Cost & Revenue Drivers
Attendees will examine a company’s accounts to identify the cost and revenue drivers that will be used in building the budget.

Activity: Building the Model
As attendees progress through the course, they will build a complete budget model. In this activity, attendees build time series and cost driver functionality.

Analyzing Historical Data
Learn advanced ways of analyzing historical data and using this to identify trends and forecast future performance.
– Extracting historical data from financial systems & using this to forecast results
– Recognizing patterns in financial data
– Using Exploratory Data Analysis tools in Excel
– Using Excel’s tools to estimate future performance: regression analysis, trend analysis, future period prediction
– Techniques to allow for seasonality

Activity: Building the Model
Attendees extend their budget models to analyze historical data and develop predictions of future performance.

Day 3: Advanced Topics

Ensuring Integrity

Learn how to ensure the model’s integrity is maintained such that any imbalances are detected quickly.
– Designing the model to incorporate integrity checks and balances
– Effective and efficient methods to ensure model integrity is maintained

Activity: Building the Model
Attendees extend their budget models to incorporate checks and balances, then present a summarized budget.

Sensitivity & Scenario Analysis
Learn how to sensitize inputs to allow for uncertainty, and learn how to incorporate multiple scenarios into budget models to provide flexibility.
– Performing Sensitivity Analysis
– Overview of Sensitivity Analysis
– Techniques to incorporate multiple -What-if- scenarios in models

Activity: Building the Model
Attendees extend their budget models to allow for multiple scenarios and sensitivity analysis on key inputs.

Optimizing Budget Models
Learn how to use the advanced features of Excel to optimize results and achieve maximum efficiency within constraints.
– Different functions and techniques available to optimize models

Activity: Model Optimization
Attendees work through a practical example of using Excel’s tools and functions to optimize models within various constraints.

Using Economic Data
Learn how to enhance budgets and forecasts by incorporating external data.
– Sources of external data
– Using external economic/industry data in models for top-down forecasting, and/or to validate the forecasts produced

Activity: Using Economic Data
Attendees use economic data to build a top-down budget model.

Model Automation
Discover a range of techniques to improve the usability of budget models:
– Building automation into models to provide a user-friendly interface and simplify model operation

Activity: Incorporating Automation
Attendees will build user-friendly controls into their budget models to improve usability.

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Who should attend?

  • Budget Analysts
  • Cost Analysts
  • Business Analysts
  • Financial Analysts
  • Finance Managers
  • Business Planning & Forecasting Staff
  • Management Accountants
  • Business Analysts
  • CFO’s
  • Financial Modellers
  • Investment & Corporate Bankers
  • Finance Professionals
  • Accountants

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Facilitator: Jeff Robson

Jeff Robson

Masters (Applied Finance), B.Com (Accounting & Information Systems), FAIM, F Fin, MAICD, CISA, MS Excel Expert

Jeff is the Principal and Founding Director of Access Analytic, a specialist consultancy that specialises in financial modelling, forecasting, valuation, model auditing, and management reporting for clients worldwide.

He is known as “The Financial Modelling Guru” because of his extensive experience in financial modelling, forecasting, valuation, model auditing, and management reporting for clients throughout the world.

His achievements have been recognised by his peers and he is a Fellow of both the Financial Services Institute of Australasia and the Australian Institute of Management.

He is skilled in the development and maintenance of analytical tools and financial models for middle-market to large corporate transactions and clients, at all levels of complexity, in both domestic and international settings.

He has worked with companies such as Chevron, BankWest, Petronas, Rio Tinto, Glencore, KPMG, Grant Thornton and Toyota.

Before working with Access Analytic, Jeff spent 6 years working in the Corporate and IT Consulting divisions of a large, multi-national Chartered Accounting firm.

Jeff is the author of a number of white papers on financial modelling on subjects such as Financial Modelling Best Practices and Financial Model Auditing.

Earlier in his career, he spent five years in banking and finance.

Recent Speaking Engagements

The following are a sample of Jeff’s recent speaking engagements:

  • Hong Kong: 4 day Financial Modelling workshop for Banking & Finance professionals
  • Hong Kong: 3 day Advanced Company Valuation workshop for Banking & Finance professionals
  • Kuala Lumpur: 2 day Advanced Budgeting & Forecasting Course
  • Hanoi: 4 days of training in Advanced Budgeting & Forecasting for large Oil & Gas Company
  • Johannesburg: 2 day Advanced Financial Modelling workshop
  • Kuala Lumpur: 4 day workshop on Advanced Financial Modelling for Oil & Gas Companies
  • Perth: 5 day workshop on Excel for Financial Modelling, and Financial Modelling Fundamentals for State Government Dept
  • Perth: 4 day Advanced Financial Modelling workshop for major Oil & Gas Company
  • Kuala Lumpur: 2 day Advanced Financial Modelling workshop
  • Perth: 5 day workshop on Petroleum Resource Rent Tax (PRRT) and Advanced Financial Modelling for Oil & Gas Companies
  • Perth: 2 day VBA Fundamentals course for Mining Services Company
  • Perth: “Business Performance Reporting on a Shoestring” joint presentation with Microsoft at the CPA Congress to over 150 attendees
  • Perth: “Power up your reports with Excel 2007” 3-hour presentation at CPA Congress to over 150 attendees
  • Singapore: 4 day workshop on Advanced Excel and Advanced Financial Modelling for multinational logistics company
  • Tehran, Iran: 3 day Advanced Financial Modelling for Oil & Gas Companies
  • Dubai: 3 day workshop on Advanced Financial Modelling and company valuation
  • Kish, Iran: 5 day workshop on Advanced Budgeting and Forecasting for Oil & Gas companies
  • Johannesburg: 4 day workshop on Advanced Financial Modelling

Feedback from Previous Participants

Feedback Initials & Position
“Excellent course for learning budgeting and forecasting. I will apply this to my work on Monday!” B.L., Budget Analyst, Phillip Morris
“I feel very confident with budgeting now. Thanks!” Z.M., Analyst, Islamic Bank
“Very useful. I learned many new things that will make me more efficient in budgeting.” A.R., Management Accountant, Manufacturing
“There were so many things I can use and apply! Many many thanks!” A.Z., Senior Analyst, Corporate Finance

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Benefits & Inclusions

Practical: Highly experienced facilitators who actively and regularly consult to clients also.
Applicable: apply what you learn to your job to further your career.
Hands-on: the course is designed to provide maximum hands-on experience.
Passionate: Our facilitators love this subject!
Clear: we specialise in translating complex subjects into concepts that are easy to understand.
On-going help: you can always e-mail the facilitator.
CD: includes worked examples, suggested solutions, reference materials, and a large variety of templates that can be immediately applied to kick-start your projects.
Comprehensive course notes.
Networking: meet industry peers and hear how they approach this subject.
Certificate of completion.
… and much more!

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Clients who have 3-4 or more people interested in this course normally prefer to run this course on an in-house basis in their offices.

We can bring all the equipment for up to 8 people so all you need is a room!

Benefits

  • Flexibility: we can combine content from multiple courses to create a custom course just for you, add-on a workshop or some mentoring sessions then run everything at the times that suit you.
  • Timing options: if you’re in Perth, we can split courses into half or single days and schedule these at times to suit you
  • No hidden extras: our fixed fee includes all materials and equipment costs for up to 10 participants
  • Cost effective: no extra fees for extra participants (maximum of 8 per session)

In-House Details & Pricing

  • Structure: half-day or full-day sessions
  • Location: all courses are available in-house, many are also available in open sessions
  • Class size: strictly limited to 10 to allow maximum interaction with the facilitator
  • Provided: projector, laptops, manual, CD
  • In-house Fees: contact us today to discuss your requirements

In-house Course Fees

Call us on +61 8 6210 8500 to discuss your requirements.

Notes:
– We are happy to customise our courses to suit your requirements
A 10% discount applies when booking 10+ full days of training in any 30 day period
– Many courses can also be split into half-days (please enquire)
– Fees for locations outside of Perth do not include equipment

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