Effective Budget Management

Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number

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Overview/Description
A priority of effective budget management is to take steps to ensure that businesses create a manageable and controllable budget and to prevent cash crunch situations from developing. To effectively manage your budget, you need to understand the elements of the various budgets and understand the importance of ongoing monitoring and analysis of their individual components. In this course, you will learn how to develop a cash budget and utilize various techniques to determine a company's current or desired cash flow and liquidity levels. You will also learn various techniques to monitor and control your company's budgeted costs as well as the appropriate corrective actions to address issues that might arise. After completing this course, you will be able to apply your newfound knowledge to effectively manage you company's budget.

Target Audience
Managers, assistant managers, and finance staff with budgeting responsibilities as well as non-financial executives

Expected Duration (hours)
3.0

Lesson Objectives

Cash Flow Analysis

recognize the value of being able to analyze a company's cash flow.

select examples of the approaches used to regulate cash flow.

match key components to cash budget examples.

use the key components to create a cash budget in a given scenario.

use the cash flow pro forma approach to determine if a given company has a projected cash shortage or surplus.

use inventory ratios to assess a given company's level of liquidity.

Budgetary and Expenditure Control

recognize the importance of maintaining budgetary and expenditure control.

determine if a given company's budget is on track.

match fixed and variable cost strategies for controlling costs to examples.

apply the appropriate corrective action to address a given company's budgeting issue.

Course Number:
FIN0163