Building a Better Budget in a Time of Uncertainty (LIVESTREAM) (LIAA16/22)
Most financial leaders would agree that budgeting is easy when business and the economy are stable. When revenues and expenses are expected to remain the same, the process becomes merely an exercise in carrying over what was done before to the current year. However, what happens when we are not sure about how the market will react to our product? What happens when the competitive landscape changes? In this course, we will discuss budgeting techniques and considerations when business lacks stability. Through a combination of theory and real-world examples, we will explore how to build flexibility into our budget – so that it can inform and drive decision-making when we don’t quite know what is ahead.
CFO’s & Controllers who are involved in the budgeting process.
- Recall the difference between a forecast and a budget.
- Identify the difference between top-down and bottom-up budgeting.
- State the key elements of a flexible budgeting approach.
- Define key cost drivers.
- State how behavioral biases may affect the budgeting process.
- Identify how headcount efficiency may be measured.
- Define scenario planning.
- Recognize best practices and controls for managing budget changes.
- The difference between a forecast and a budget
- Core earnings analysis
- Top-Down vs. Bottom-Up Budgeting
- Flexible Budgeting
- Identifying Key Cost Drivers
- Incorporating scenario analysis into the budget
- Behavioral biases and how they may affect the budgeting process
- Measuring the need for additional headcount
- Managing budget changes
- How variance analysis informs the following year’s budget