Business management activities require the various managers to be promptly informed of business results and the performance of management as a whole.
It is therefore necessary to set up a priori the activity of planning and scheduling the strategic and operational actions that will be to be implemented in the short term, so as to monitor and control the consequences of the strategic decisions made on the company’s financial resources, profits, production and sales.
The budget is a tool that enables the planning and subsequent control of profitability, costs and uses of various inputs, allowing the elimination of possible inefficiencies and creating a “cost and management culture” at the various levels of the company
Methodology
The course alternates moments of traditional training with practical exercises. In particular, the practical development of a budget, in its income statement, balance sheet and cash flow components, through the use of a reference model, is planned through the presentation of a case study. The exercise will be complemented by the analysis of key economic and financial indicators. The
contained size of the classroom allows for continuous exchange with the lecturer in the “classroom consulting” mode.
Goals
- Explain the basic concepts of planning, scheduling and control activities
- Explain the behavior of business costs
- Convey indispensable notions for properly setting up budgeting activities
- To acquire a complete budgeting methodology (economic, financial and equity)
- To acquire a methodology for verifying the feasibility and sustainability of the economic and financial objectives of the budget
- Provide some basic techniques for reporting and variance analysis.
Program
- Planning, Scheduling and Control:
– purpose of planning, scheduling and control activities
– analysis of budget construction methodologies
– the Break Even Point model:
– what the BEP consists of
– fixed cost coverage and contribution margin
– the role of the BEP in decision making
– the BEP and the budget construction process
– sensitivity analyses
- The budget as a tool for planning and control:
– goals, objectives and strategies of the budget
– timetable, stages and actors of budgeting activities
- The budgeting process:
– procedures, methods and techniques of economic and financial budgeting
– operating budgets: from sales budgets to technical, production and operating structure budgets
– the investment budget
- Verification of the financial feasibility of operating and investment budgets:
– the financial budget
– the cash and financial sources budget
– the translation of the economic budget into financial aspects (net working capital and net financial position)
- The analysis of variances from budget data and reporting activities:
– content, steps and techniques of variance analysis: from forecast to final data
– content, structure and objectives of the report
- Exercises and analysis of business cases.
