Financial Planning and Control

Financial Planning, Budgeting, Forecasting and Control

To be successful in business, be it Private, Public or Third Sector, requires a robust understanding of a wide range of financial concepts and skills. It is essential that everyone from junior and first line managers to directors, board members and chief executives understand financial budgets, forecasting and especially financial management techniques.

This one-day workshop explores the financial planning process, from setting budgets, to managing finances. It enables delegates to understand better both the theory and practice of the processes that underpin financial forecasting, budgeting and finance performance management activities.

In simple terms this workshop explores the key concepts of financial forecasting, budgeting, sales, costs and general financial control including some of the tricks that can be used to make financial performance data look more impressive.

For whom
This workshop will be of interest to delegates who have completed the first course and wish to further their professional development. It is also of interest to managers who are taking a more active role in the financial processes of their organisation beyond mere reporting and assuring their part of the organisation conforms with organisational policy – towards understanding how their organisation appraises its potential future activities pre and post event and participating in activities to improve the performance of the organisation.

Aims and Objectives
At the end of this workshop, delegates will understand the forecasting and budgeting process – how it can be used to improve performance. Delegates will also learn about how the behaviour of individuals affects the forecast/budget and review process – not always for the better of the organisation’s stakeholders! Finally, delegates will be with some basic understanding of the financial performance of their organisation can be dramatically improved by understanding how to leverage innovation and motivation related tools.

The workshop is split into 4 sessions:

1. Introduction to Forecasting and Budgets

  • Reasons for forecasting and budgeting
  • How forecasting and budgeting is used in the real world
  • Assessing the financial needs of an organisation
  • The Financial planning process
  • Building your financial model
    • top down
    • bottom up
  • Forecasting analysis

2. Revenue Planning and Cost Accounting

  • Main methods of costing; including Activity Based, ABC, Absorption, & Marginal.
  • Select the most appropriate method of costing and understanding its impact
  • Break even point
  • Working capital
  • Leverage/Gearing
  • Profit Margins
  • Risk Assessment
  • Budgeting
  • Depreciation
  • Variance analysis – using budgets to run the business

3. Report Manipulation – How, Where, When and Why Reports can Mislead

  • Issues with the budgeting/reporting and performance appraisal process
  • spin and impression management
  • Creative accounting
  • How the balance sheet can fool you
  • How the profit loss account can fool you
  • How can the cash flow forecast can fool you
  • Business plans and pitching

4. Managing Budgets and Financial Performance

  • Setting, controlling and managing budgets – tactical and operational levels
  • Purpose and dangers of Finance performance management
  • Features of a Financial performance management system
  • Strategic Financial Management
  • Managerial and Operational Control
  • Achieving a Balanced Score Card