The Essentials of Budgeting (For Non-Financial Professionals)
A budget is a written statement of the plans and goals of an organization expressed in dollars. The process of creating, implementing and understanding a budget is often as valuable as the budget itself. When done well, a budget helps an organization work together towards a mission and a shared set of goals.
If accounting isn't your background, it can be frustrating when tasked with reviewing transactions or trying to understand how transactions are recorded. This program will simplify budgeting and accounting, and allow you to focus on keeping track of your finances. If you are a business owner, a manager, or you work with budgets in any way, it will benefit you to learn about all you can about this vital subject. It's easier than you think and critical to planning for success! Understand the process of budgeting through practical hands-on work with actual examples, and gain confidence in using budgets for funding proposals and project success.
Who Should Take this Course:
- People new to budgeting
- Small Business Owners
- Functional managers, professionals, and all individuals involved directly or indirectly with the budgetary planning and an organization's control process
- Individuals looking to gain a certificate in budgeting, build their resume and enhance their career
What You Will be Able to Do:
- Understand how budgets and accounting statements fit together
- Identify how to plan, monitor and report against your budget
- Realize the importance of cost control and forecasting cash flow
How You Will Benefit:
- Enhance your decision-making skills by better understanding the financial impact of your choices
- Increase your confidence as you contribute your ideas in financial planning meetings with upper management
- Get your new ideas implemented and applauded for their bottom-line results — rather than set aside and left untested
To receive the Anderson School's Certificate of Completion, participants must attend 5 of the 6 sessions.
- We’ll start by studying the income statement and the balance sheet; what are they, how do they work and what they can tell us about a business entity.
- We learn about how journal entries are what are used to create income statements and balance sheets. We’ll study journal entries to learn how they work in order to gain a deeper understanding of the income statement and balance sheets. This session will have plenty hands-on exercises that will help students understand how income statements and balance sheets are built.
- We’ll continue our study of basic financial reporting through a combination of looking closely at some income statements and balance sheets and then we’ll create several from scratch.
- Recognize how budgeting fits into the broader context of corporate and business planning.
- Identify the ways in which budgeting facilitates decision-making and control
- Identify the inputs into the budgeting process and their sources
- Recognize that budgeting is essentially an attempt to mold the following year’s Income Statement
- Determine headcount and salary expenses
- Estimate where to apply merit raises, promotions
- Allow for attrition and replacement
- Use historical cost data to project future expenses
- Identify the cost drivers that determine how much will be required in future periods
- Assess your environment for changes that affect your plans
- Gather financial data from Finance and Accounting, Marketing, vendors, your bosses, your employees, your peers and partners
- Research historical spending patterns and future costs
- Recognize how budgeting “games” (sandbagging, padding, spend-it-or-lose-it) are bad for the company overall
- Monitor actual expenses and budget variances, make adjustments, and take actions to remedy problems
- Learn a number of expense-reduction tactics that can be applied to bring expenses under control