Marketing & Sales

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Certified Sales Professional

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Business-to-Business Marketing Strategy

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How to Prepare, Understand and Use Budgets

Introduction

This one day course, intended to be an extension to the very successful two day course "Understanding Accounting", is designed to enable participants to understand the language and basic concepts of budgets and budgetary control. To gain maximum benefit, participants should have some working knowledge of accounting.

How you will benefit

  • Prepare budgets
  • Use budgets as a management tool
  • Understand the use of variance analysis
  • Predict profitability based on changes in sales and/or costs

Who should attend

People from small and large organisations will benefit equally. Previous training in finance is not required, but a general familiarity with accounting reports is expected.

What you will cover

Planning and the functions of management

  • The critical functions of management
  • Aligning the budget with the strategy of the organization
  • Road map to strategy
  • Budget as a planning tool
  • Control: the missing link
  • Planning pitfalls

The key financial statements

  • The accounting system
  • The income statement
  • The balance sheet
  • The cash flow statement

Budgeting: process and approaches

  • The advantages of budgeting
  • The budget process
  • Rolling budgets
  • The master budget
  • Operating and capital budgets
  • The budgeted financial statements
  • Approaches to budgeting:
    • Incremental budgeting
    • Zero based budgeting
    • Flexible budgeting
    • Kaizen budgeting and continuous improvement
    • Activity based budgeting
    • Tools of forecasting
    • Direct and indirect costs
    • Characteristics of an effective budget
    • Problems in budgeting

Cost control

  • Budget as a control tool
  • The control process
  • Characteristics of an effective control system
  • Responsibility reporting
  • Variance analysis: identifying the components of variance
  • Variance analysis: taking the corrective action

Capital expenditure budgeting and analysis

  • Time value of money
  • Simple versus compound interest
  • Identifying and analyzing cash flows
  • The discount rate: using cost of capital
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Profitability Index (PI)
  • Pay-Back Period (PBP)
  • Accounting Rate of Return (ARR)
  • Approval for Expenditure (AFE)
  • Sensitivity and risk analysis

Cost-Volume-Profit analysis (CVP)

  • Identifying the fixed costs and variable costs
  • Computing breakeven point in units
  • Computing breakeven point in sales
  • Assumptions of CVP analysis
  • Using CVP in budgeting decisions

 

Study Time

This practical training program is designed with:

16 hours training - 2 days

Schedule

Ho Chi Minh
4,000 $
15 Apr & 16 Apr 2022
Vancouver
4,000 $
12 Jul & 13 Jul 2022
New York City
4,000 $
26 Jul & 27 Jul 2022
Jakarta
4,000 $
27 Oct & 28 Oct 2022

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