Budgeting and Forecasting the Planning Process

For managers, department heads, line managers, supervisors, business owners, executives, professionals with non-financial backgrounds, anyone responsible for preparing budgets and forecasts.

What is the right process for developing a budget? Where do you start? What trends are important? What about depreciation and amortization? How to budget for headcount and benefits? When does the process start and end? How do you keep up to date using forecasts? Why do you need to forecast and why is it important? Where do the numbers go after you are done? What’s a typical planning process like at a company?

These are some of the questions that will be answered in this seminar. Most people do not have a financial background, yet some part of their job either directly or indirectly involves the finance or accounting function. Every week, month, quarter and/or year, the finance department asks for a forecast or budget. Sometimes they do not provide enough information to complete the job in a thorough manner. Sometimes you just are given a number an told to meet it.

As you can see, the actions and decisions of non-financial people make an impact on the results of a company. Having an understanding of the financial planning process, budgeting and forecasting will help you in communication with the finance department and give you better insight into the wellness of the company, team or department. With basic knowledge of finance and accounting, along with some of the activities such as forecasting, you will see how your decisions and actions affect the financial picture and results of your company, including the stock price.

This seminar is designed for all non-financial people as well as finance people who would like to get an understanding of how others may prepare forecasts or prepare the annual operating plan. It’s laid out in very easy to understand terms with real life examples to make it as simple as possible. You will learn the basics of budgeting, forecasting and planning. It will be easier to communicate with your finance department or finance person. You will also understand how your decisions or actions will affect the company’s financial performance and you can operate more effectively.

Seminar Overview – One Day Program

Part 1: Introduction
Some basic definitions of accounting and finance
Purpose of budgeting
Why we need forecasts throughout the year
Where do the numbers go after they leave your group
Review of financial terminology
Stakeholders of accounting and financial information

Part 2: Overview of the planning process
Typical process in a large company
Typical process in a smaller company
Timing from start to finish
Changes that can and usually happen during the process
Starting with a good strategic plan
Ending with a budget

Part 3: The Budget
What items are in the budget
Headcount
Benefits
Depreciation
Amortization
Fixed expenses
Discretionary expenses

Part 4: Forecasting
Why do we need to forecast
Who uses the forecast?
Giving guidance to investors and analyst
Changes from the plan or budget

Part 5: Trends and ratios
Financial analysis and planning
Important metrics and ratios to help in the process
Keeping an eye on expense and revenue change