Strategic Budgeting Techniques for Preparing Your 2019 Budget Including Cash Flow Forecast

08-09 Nov, 2018, Kuala Lumpur

FOCUSING ON
  • Introduction Budgeting Principles – Including Review Of The Government’s October 2018 Budget Announcement
  • Understanding Cost Behaviour: An Important Factor For Tracking Your Costs.
  • Use Of Ratios As A Tool To Analyze Financials And Understand Actual Vs Budget Variances
  • Preparing 2019 Budgets Using 2018 Forecast
  • Practical Issues Faced When Preparing Budgets
  • Cash Flow Planning In The Budget Process
  • Transition Of GST To Sales And Services Tax (SST)
OBJECTIVE

This 2-day course is designed to enable participants to prepare your 2019 Budget after a strategic review of your business/company. Participants will be able to appreciate and understand the importance of budgets as a management tool and also how budgets actually reflect the vision, mission and objectives of a company.

 

The course will initially provide techniques to review your 2018 Year to Date financial performance and have a reasonable accurate forecast for the full year before starting on to prepare the 2019 Budget. Without a review of current year 2018, the 2019 Budget numbers will be meaningless.

 

Throughout the 2 days, participants will have the opportunity to work on various case studies, budget exercises and real life issues that will require them to be imaginative and think out of the box to stay on track for 2018 and plan for 2019.

 

In view of the switch over from GST to SST on 01 September 2018, the course will also cover the latest SST updates announced in the October 2018 Budget plus all other relevant announcements.

COURSE HIGHLIGHTS
  1. Revisiting Budgeting Principles; Understanding Why Companies Need A Budget. SWOT Analysis of Your Company.
  2. Obtaining Full Understanding of Costs Behavior to Track Down Your Costs and Budget Accordingly.
  3. Using Ratio Analysis to Understand Variance Analysis.
  4. Mastering Techniques for Preparing a Budget Including Cash Flow Planning.
  5. Understanding and Managing Staff Behaviour during the Budget Process.
  6. Reviewing the Impact of Switching Of GST to SST on Your 2019 Budget.
WHO SHOULD ATTEND
  • Financial Controllers
  • Management Accountants
  • Budget Officers
  • Non-financial department heads/section heads accountable for a Budget.
  • Any other staff involved in the Budget process
DAY 1
9:00 INTRODUCTION: BUDGETING PRINCIPLES – INCLUDING REVIEW OF THE GOVERNMENT’S OCTOBER 2018 BUDGET ANNOUNCEMENT
  • Budgets and alignment to the Vision and Mission of the Company.
  • Review of the October 2018 Budget Announcement and the important and relevant changes to be taken on board when preparing your 2019 Budget.
  • Identifying your company’s key strengths and weaknesses in order to be realistic in your budgets.
Setting the mood for the program:
SWOT analysis exercise by all participants
on their own companies.
  • Financial Framework as basis for Budgeting; why budgets must translate to financials.
  • Comparison of the 2 common types of Budgets: Zero-based versus Incremental.
11.00 UNDERSTANDING COST BEHAVIOUR: AN IMPORTANT FACTOR FOR TRACKING YOUR COSTS
  • Identifying the manufacturing costs including indirect overheads.
  • Non-manufacturing variable costs and the importance to determine the break-even position.
  • Fixed costs and the relation to sales volumes.
  • Controllable and Non-controllable costs; when this is important.
1:00 Lunch

2:00

USE OF RATIOS AS A TOOL TO ANALYZE FINANCIALS AND UNDERSTAND ACTUAL VS BUDGET VARIANCES

  • Review of the 4 main groups of ratios and the areas where they apply.
  • Use of ratios to identify the root cause of variance analysis; “the 3 step drill” approach.
  • Awareness of the “ratio tree” and seeing how every activity in the company impacts the company’s financial performance.
  • Identifying and setting the appropriate ratios for your company and being consistent.
Class working exercise on analyzing ratios and finding root causes for variances. Using current year’s performance as a benchmark for
next year’s 2019 budget.
5:00 End of Day 1
DAY 2
9:00 PREPARING 2019 BUDGETS USING 2018 FORECAST
2 Hour classroom exercise preparing budgets using a sample company. Outcomes include Profit & Loss and Balance Sheet and Cash Flow Budget preparation.
11.00 PRACTICAL ISSUES FACED WHEN PREPARING BUDGETS
  • Dealing with Central Overhead/Support Service allocations.
  • Understanding the budget cycle of your own company and preparing ahead; knowing the management expectations.
  • Communications skills required to handle budget variance accountability disputes and budget setting differences.
  • Techniques to use your Accounting Software to the maximum to record and track your Budget.
1:00 Lunch

2:00 CASH FLOW PLANNING IN THE BUDGET PROCESS
  • Importance of Cash Flow to the business by understanding the cash flow cycle of a company.

  • Basic principles in preparing a Cash Flow Budget.

  • Planning your cash flow requirements including looking at short term funding options.

  • How to minimize the impact of unfavorable Cash Flow to the Budget.

Cash Flow budgeting exercise; using 2018
financials as a basis for Budget 2019
3:45 TRANSITION OF GST TO SALES AND SERVICES TAX (SST)
  • The basic principles of Sales and Service Tax
  • The Accounting double entries to record the basic SST transactions compared to GST.
  • How SST entries are captured in the Income Statement and Balance Sheet.
  • Reconciliations required to ensure SST accuracy.
  • Review of the latest changes announced in the October 2018 Government Budget.
5:00 End of Course

 

LEARN FROM THE BEST

MR. S. GOBINATHAN, FCCA (UK), MBA (USA), a UK qualified accountant has an extensive professional finance career, spanning over 30 years with BP the leading global oil & gas company and Bristol-Myers Squibb a Fortune 500 US based global pharmaceutical company. His career with BP and Bristol-Myers Squibb has taken him to various countries such as Indonesia, Vietnam and more recently Australia.

 

Throughout his working career, Mr. Gobi has held Finance Controller and Finance Director responsibilities for a wide range functions including Financial Control, Financial Reporting, Management Information, Business Analysis, Budgetary Control, Corporate Reporting, Cash Flow Management, Investment Appraisal, Project Commercials and Internal Auditing.

 

Mr. Gobi has much experience in critically analysing financial performances, verifying and validating new investments decisions, monitoring budget variances, business risk management and corporate finance. In this course

 

In this course Mr. Gobi would like to share with participants his experience on how Finance professionals in today’s world can move up the corporate ladder by increasing their competency levels by improving their Financial Accounting Interpretation skills.

 

Mr. Gobi spends most of his time travelling between Malaysia and Australia conducting training programs and performing consultancy services. He has an established management consultancy business in Australia.

 

In Malaysia Mr. Gobi has been conducting both public and in- house training programs on finance for over the last 15 years and has a proven track record in delivering successful programs.

 

VENUE DETAILS

Dorsett Kuala Lumpur
172 Jalan Imbi
55100 Kuala Lumpur

Phone :03 2716 1000

 

IPA TRAINING IS REGISTERED WITH

 

CONTACT US

Juliany, 
O - 03 2283 6109,
M - 019 3134436
juliany@ipa.com.my 

Michelle, 
O - 03 2283 6100, 
M - 019 363 7822
michelle@ipa.com.my 

For Customised In-House Training
Yvonne,
O - 03 2283 6101, 
M - 012 2011247,

F - 03 2283 6108
 
yvonne@ipa.com.my
 

ADDRESS 

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Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my