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2-Day Effective Budgeting and Forecasting

Budgeting in business is essential for financial planning and strategic growth. Here are some key purposes of budgeting:

1. Financial Control: Budgeting sets limits on spending, helping businesses avoid overspending and wasteful expenses. It provides a benchmark for measuring actual performance against planned targets.
2. Goal Setting and Planning: Budgets allow businesses to set short- and long-term financial goals and outline the steps to achieve them. They support decision-making on growth initiatives, investments, and resource allocation.
3. Profitability Forecasting: Budgeting helps estimate expected income and expenses, allowing businesses to forecast profitability. This aids in setting realistic revenue targets and managing costs effectively.
4. Resource Allocation: By establishing a budget, businesses can allocate resources where they’re most needed, ensuring funds are directed to high-priority projects, departments, or growth areas.
5. Performance Evaluation: Budgets serve as a benchmark to assess performance. Variance analysis—comparing actuals to the budgeted figures—helps identify areas of improvement and opportunities for cost savings or revenue growth.
6. Risk Management: Budgets help identify financial risks in advance, allowing businesses to set aside reserves or take preventive measures. This financial foresight can be crucial in managing downturns or unexpected expenses.

By fostering better financial planning, budgeting enables businesses to operate more effectively, make informed decisions, and achieve their strategic goals.

In this course, you will learn the fundamental principles of budgeting, budgetary controls, forecasting processes, methodologies, best practices and how an effective budget planning could impact on the performance of a business.

Together, we’ll learn how to prepare, read and execute a budget plan.

I hope you enjoy your journey into Budgeting and Forecasting. Welcome to Effective Budgeting and Forecasting – a Tool to driving the performance measurement of a Business.

Let’s Begin!

Jeffrey Lee

Objective

At the end of this highly engaging training, successful Participants will learn to :

• Understand the fundamentals of budgeting and financial planning
• How to create realistic, goal-oriented budgets
• Develop skills for tracking and adjusting budgets effectively
• Improve decision-making based on financial insights
• Identify common budgeting pitfalls and strategies to avoid them.

Outline

Module 1: Introduction to Budget Planning

• Objective: Lay the groundwork for budget planning by covering basic concepts and terminologies.
• Topics Covered:
  • What is a budget and why is it important?
  • Key budgeting terms and definitions
  • Types of budgets (personal, departmental, organizational)
  • The budgeting process and cycle
• Activities:
  • Icebreaker: Discussing business budget experiences and challenges
  • Group Activity: Budget terminology matching exercise

Module 2: Setting Budget Goals and Objectives

• Objective: Define clear and measurable financial goals aligned with personal or organizational priorities.
• 
  Topics Covered:
  • Identifying short-term and long-term budget goals
  • SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) goals in budgeting
  • Prioritizing expenditures and aligning with goals
• Activities:
  • Exercise: Setting SMART budget goals
  • Group Discussion: Importance of goal alignment

Module 3: Gathering Data and Forecasting

• Objective: Teach methods for gathering accurate data and using it for realistic forecasting.
• Topics Covered:
  • Data sources for budgeting (historical data, financial statements, etc.)
  • Income and expense forecasting techniques
  • Scenario planning and contingency forecasting
• Activities:
  • Case Study: Analyzing a sample budget to identify data gaps
  • Hands-On Exercise: Forecasting expenses based on sample data

Module 4: Building and Implementing a Budget

• Objective: Walk participants through creating and implementing a detailed budget.
• Topics Covered:
  • Structuring a budget (fixed vs. variable expenses, income categories)
  • Budgeting software and tools overview
  • Implementation strategies for effective budget management
• Activities:
  • Workshop: Building a simple budget with sample data
  • Tool Introduction: Overview of popular budgeting software (Excel, Google Sheets, budgeting apps)

Module 5: Monitoring, Tracking, and Adjusting the Budget

• Objective: Equip participants with tools for tracking budget performance and making adjustments.
• Topics Covered:
  • Monitoring actual vs. budgeted expenses
  • Variance analysis and identifying budget deviations
  • Adaptive budgeting: Making timely adjustments to the budget
• Activities:
  • Simulation Exercise: Tracking and adjusting a sample budget
  • Discussion: Real-life examples of budget adjustments in response to changing circumstances

Module 6: Problem Solving and Decision Making in Budgeting

• Objective: Develop skills for identifying budget issues and making data-driven decisions.
• Topics Covered:
  • Identifying and addressing common budgeting problems
  • Decision-making frameworks for budget adjustments
  • Balancing needs and limitations
• Activities:
  • Group Scenario Analysis: Solving a budget challenge using decision-making frameworks
  • Reflection Exercise: Lessons learned from real-world budgeting issues

Module 7: Budgeting Best Practices and Pitfalls to Avoid

• Objective: Highlight best practices and common mistakes in budget management.
• Topics Covered:
  • Budgeting best practices for accuracy, consistency, and efficiency
  • Common pitfalls (e.g., overestimating revenue, underestimating expenses)
  • Strategies to overcome challenges in budgeting
• Activities:
  • Group Activity: Discuss and document best practices
  • Reflection: Sharing experiences with budget mistakes and lessons learned

Module 8: Final Assessment and Wrap-Up

• Objective: Consolidate learning and evaluate the understanding of budget planning.
• Topics Covered:
  • Review of key learnings and takeaways
  • Q&A and open discussion
• Activities:
  • Final Exercise: Participants create a draft budget plan for a given scenario
  • Course Evaluation and Feedback

Who should attend

• This course is suitable for non-finance executives from senior and mid-managers, supervisors to those who seek to improve their knowledge and/skills to read and understand budgeting and forecasting process for an effective financial planning and performance measurement of business.

Methodology

• Highly experiential with bite size lectures, individual and group discussions and case studies.

• 2 Days per training session. (Program may be adjusted to 1 Day according to request )

Profile of Jeffrey Lee Hing Hook

• Heidelberg Senior Executive Leadership Program | Heidelberg Academy/Oxford University
• Fellow of Chartered Management Accountants (FCMA) | AICPA & CIMA, UK
• Chartered Accountant | Institute of Singapore Chartered Accountants (ISCA)
• Advance Certificate in Performance Leadership (ACPL) | Institute of Adults Learning Singapore
• Khrysalis Coaching Certification Programme | International Coaching Federation (ICF)

Jeffrey Lee is an Acrredited Certified Adults Learning and Performance Facilitator (ACPL) woith the Institute of Adults Learning Singapore and also on the path to becoming a Certified Practising professional Coach. He motivated to constantly develop his skills and grow professionally. He has a proven ability to organize and facilitate management and team building training programs and activities (internally) for some of the MNC’s and Companies he worked with in his past employments.

Presently Jeffrey is providing Fractional CFO services , Independent Director and Business Consultant to Small and Medium Enteprise Businesses.

Prior to his current roles, Jeffrey Lee spent close to 40 years at Senior Management Roles as Chief Financial Officers and other Corporate Functions. He is a dynamic and forward-thinking financial executive with comprehensive experience in driving profitability, leading corporate restructuring, and fostering business growth across diverse sectors.

An experienced CFO/Senior Management and Finance Leader with extensive work experience and knowledge in all financial matters including audit, finance and business management in industries relating to Technology, Government, Insurance, Consumer Financing, Manufacturing & Distribution , Leisure and Travel related sectors. Jeffrey Lee is a performance-driven professional with extensive practical experience in Senior Management/Finance Executive roles across international markets in Asia Pacific, Middle East, Africa, and the Americas. Known for business and financial advisory/consulting, with specialization in strategic business planning, corporate finance & financial management, finance transformation, talents development, business/corporate restructuring, M&A and enterprise risk management.

Skilled in corporate restructuring, finance transformation, and mergers & acquisitions. Solid history of managing large, multicultural teams and translating complex challenges into actionable outcomes. Eloquent Communicator, adept at liaising across all corporate levels to drive commercial success and business growth. A Financial leader with strong track record in finance and accounting, strategic planning, risk management, and financial analysis.