Financial Planning Control and Budgeting

Introduction

This Corporate Financial Planning, Budgeting & Control training course is designed to enable delegates to make corporate financial decisions in an increasingly volatile international marketplace with the view to increase profitability, maintain liquidity and reduce financial risk is a challenge for all organizations regardless of their size. This training course is designed to enable delegates to understand the critical aspect of corporate decision making and enhance their knowledge from the development of a strategic corporate financial plan, the raising of finance, the preparation and management of budgets to support the plan, the management of financial risk and ultimately the measurement and evaluation of performance. Corporate planning, budgeting, and control are essential in modern organizations. Effective planning, budgeting, and control lead companies to their Mission, Vision, and Goals.

This training course will highlight:

• The Concept of Agency Theory
• Risk Management
• Managing and Controlling Cash Flow
• Time-adjusted Valuation Methods
• Financial Projections
• SWOT Analysis

Objectives

The objectives of this training course are to provide delegates with the necessary tools and techniques to enable them to:

• Evaluate the various methods of finance and make successful capital investment decisions
• Develop effective corporate financial plans aimed at maximizing return and minimizing risk
• Prepare, manage and control budgets to support the corporate financial plans
• Identify and manage financial risk effectively
• Measure and manage performance effectively
• Create opportunities for your personal development and increased financial awareness

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This training program is suitable for:

• Non-financial and Financial Personnel
• Financial Decision-makers
• Professionals acting upon the financial decisions of others
• Analysts
• Managers involved in planning and decision-making
• Financial Planner
• Individual with very basic financial knowledge.
• Individual with ambitions to work in finance-related fields.
• Junior Managers involved in risk management
• Managers and those with financial responsibilities

Course Outline

DAY 1: Corporate Financial Planning              

• Strategic Planning
• The Objective of the Firm – Meeting Shareholder & Stakeholder Objectives
• Agency Theory – The Relationship between Shareholders & Management
• Creative Accounting and the Case of Enron
• Financial Management & Financial Planning – The Scope, Role & Responsibilities of Financial Management
• Preparing a Financial Plan – The Master Budget
• Forecasting Future Cash-flows and Financial Modelling
• Time Series Analysis, Correlation & Regression

DAY 2: Financing the Plan                                          

• Sources of Finance – Long Term & Short Term
• Evaluation of the Types of Finance - Equity vs. Debt Finance
• Hybrid Finance & Financial Engineering
• The Dividend Decision
• The Cost of Capital and Weighted Average Cost of Capital (WACC)
• Capital Asset Pricing Model (CAPM)
• Accounting Rate of Return (ARR)
• Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback

DAY 3: Preparing & Managing Budgets to Support the Financial Plans

• Definition of Budgets, the Budgetary Process and Budgetary Control
• Types of Budgets-Fixed, Flexible, Incremental and Zero Based
• The Purpose / Benefits & Problems / Limitations of Budgets
• Setting / Implementing Effective Budgets - Eliminating the Problems
• Responsibility Accounting and Absorption Costing
• Activity-Based Budgeting / Costing (ABB, ABC)
• Variance Analysis, Cost Behaviour, Break Even Analysis & Sensitivity / What-If Analysis
• What-If Analysis combined with Du-Pont Analysis

DAY 4: Managing and Controlling Cash Flow to Support the Financial Plan

• Cash vs. Profit & The Cash Conversion Cycle
• Calculating and Managing the Cash flow Cycle
• Cash Flow Ratios
• Working Capital
• The Cost of Maintaining Working Capital
• Maintaining the Optimum Level of Working Capital
• Working Investment Ratios
• Preparing a Monthly Cash Flow Forecast

DAY 5: Managing Financial Risk        

• Risk Management & Types of Risk
• Identifying Risk – SWOT Analysis
• The Major Quantitative & Qualitative Risks Facing Companies
• Establishing a Risk Management Strategy
• Financial Risk Management & Hedging Techniques
• Managing Exchange Rate & Interest Rate Risk
• Derivatives-Forwards, Futures, Options & Swaps
• Risk Management Glossary of Terms