The Basics of Budgeting


Overview/Description
Target Audience
Prerequisites
Expected Duration
Lesson Objectives
Course Number

Overview/Description
Running a department without understanding the budget process is like driving a car without knowing how to steer. Every manager needs a basic understanding of how to plan, use and monitor adherence to a budget. Addressing the needs of your budget process will help you support the financial processes and goals of your organisation as a whole. In this course, non-financial managers will learn the concepts and techniques important to the budget process, including: forecasting revenue and expenses, choosing the best kind of budget strategy and progressively measuring the success of your plan through the use of variance reports.

Target Audience
Non-financial managers who seek an introduction to budgeting

Prerequisites
none

Expected Duration (hours)
2.0

Lesson Objectives

The Basics of Budgeting

  • recognise the value of adhering to an effective budgeting process in business.
  • match budget process activities with examples.
  • complete the preliminary activities to establish budget objectives for a hypothetical department.
  • recognise the benefits of using a methodical budget process.
  • implement the most favourable budget approach for a given business scenario.
  • match two budget approaches with advantages and disadvantages.
  • complete procedures to prepare a departmental budget that supports hypothetical company financial goals.
  • match budget components with examples.
  • forecast profit or loss given hypothetical company budget components.
  • identify elements used to forecast revenue and expense.
  • recognise the importance of monitoring adherence to budgets.
  • improve monitoring of budget adherence by using variance reports in a hypothetical business scenario.
  • identify the principles of effective variance report use.
  • apply appropriate techniques for addressing revenue variances to hypothetical business situations.
  • match techniques for addressing revenue variances with examples.

    • Course Number:
    fin_01_a02_bs_enin