Effective Budgeting, Cost Control
and Overhead Reduction in an Economic Downturn

Very much like when the rocks below the sea become visible when the tide goes out, high levels of organisational overheads are exposed during an economic downturn, the result of which is lower profit levels and possibly losses. The position may be acceptable within the short term, but if such a situation continues over an extended period it is an obvious threat to economic survival. This therefore requires an assessment of the level of necessary overhead sand other resources required to support lower levels of economic activity.

The budget is a plan of how resources may be economically acquired and allocated over the short term (up to one year forward). Effective budgeting recognises changes in the external economic environment, such as an economic downturn, and then identifies the areas in which appropriate responses are required to prepare a financially viable plan.

This training course deals comprehensively with these issues in plain language that is easy to understand. It covers in detail how alternative costing systems are used in budget preparation. It also explores alternative approaches to costing, and budgetary control that may more accurately identify individual areas of overhead and determine appropriate levels of overhead, materials and labour resources to support reduced levels of activity.

The Instructors own commercial career experiences and many other real-world business scenarios are shared throughout this stimulating seminar to illustrate and reinforce the practical application of the tools and techniques and best practice.

This training course will highlight:

• Effective budgeting and performance measurement
• Full costing, marginal costing, and activity based costing (ABC)
• Operating budgets, cash budgets, and master budgets
• Fixed budgets, flexed budgets, and variance analysis
• Continuous performance improvement, and the balanced scorecard

By the end of this training course, participants will have learned how to:

• Identify the links between financial planning, budget setting, and performance measurement
• Use alternative approaches to costing for planning, budgeting and budgetary control to identify specific overheads and their appropriate levels
• Prepare an operating budget, cash budget, and master budget
• Develop budgetary control systems, and analyse variances using flexed budgets
• Integrate continuous performance improvement into the budget process and link budgets and KPIs with financial plans using the balanced scorecard

It is crucially important for everyone involved in planning, budgeting and budgetary control to be conversant with best practices and their practical application. In a period of economic downturn in particular this is even more essential to ensure that organisational goals are met.

This training course is suitable for a range of personnel from companies, corporations and governmental organisations and, in addition to financial analysts, controllers, accountants and departmental managers active in the planning and budget setting processes,will benefit business professionals working in:

• Estimating and Costing
• Operations
• Facilities Management
• Sales and Marketing
• Quality Management
• Engineering
• Project Management
• Procurement
• Logistics
• Research and Development
• Asset Management
• Human Resources,

and any other financial and non-financial personnel that need or wish to understand financial planning, costing and the control of overheads, budgeting and budgetary control.

Individuals with varied experience and knowledge are encouraged to share their own experience and consider alternative approaches introduced during the seminar. Formal presentations will be supported by numerous worked examples, the use of real-world scenarios and group discussion. In this supportive and interactive workshop environment your Instructor will facilitate team case studies and exercises that will reinforce the hands-on application of each of the learning points and topics covered.

Difficult mathematical concepts are minimised wherever possible and handled in a visual and user-friendly way– our aim is for this to be an enjoyable learning experience.