Planning and drawing up an operational budget

Overview

Budgeting and planning involves a variety of organizational activities, from determining the organization’s budget objectives to approving its budgets for a specific period of time. The individual departments translate the budgetary objectives of the organization into relevant departmental objectives in their field. Operational budgets often start with the revenue forecast, followed by various expenditure budgets. Numerous forecasting tools are used to forecast revenue and expenditure. Knowledge of the various activities associated with preparing, verifying, and obtaining management approval regarding operating budgets helps you with your budgeting responsibilities within the organization.

This course outlines some of the key activities needed to plan and prepare an operational budget. Discuss key features of the handbook and budget calendar. It also presents some qualitative and quantitative methods and how to use them in order to draw up an operational budget. Finally, the course introduces you to the steps of checking and approving your budget.

Target Audience

Financial and non-financial experts, functional managers, executive staff and all persons directly or indirectly involved in the planning and control process of the organization.

Objectives

• Planning and drawing up an operational budget
• make a correspondence between the budget manual and the budget calendar and their characteristics
• correspond to qualitative forecasting methods and examples
• use quantitative forecasting to prepare a sales budget based on a specific scenario
• classify the components of an expenditure budget as fixed or variable costs
• correspond to each stage of the verification and approval process and examples