The budget and the forecast are two common tools used by controllers and CFOs across almost every industry. However, are we really getting the most out of these tools? Or are we merely replicating whatever was done last year? In this course, we will use examples and illustrations to demonstrate various budgeting and forecasting techniques. We will discuss traditional approaches, as well as newer approaches such as flexible budgeting, in an effort to show how companies can gain more value.
Learning Objectives
- State the difference between a forecast and a budget
- Identify the difference between top-down and bottom-up budgeting
- Recognize the key elements of a flexible budgeting approach
- Define a key forecast driver
- State when it may be appropriate to make a forecast adjustment
Major Topics
- Budgets vs. forecasts
- Cyclicality
- Identifying key forecast drivers
- Budgeting variances
- Horizontal analysis
- Flexible budgeting
- Dealing with behavioral biases
- Managing headcount
- Forecasting and budgeting governance
