Master Budget Creation & Integration Training Course

Introduction

A master budget serves as the cornerstone of an organization's financial planning, integrating all individual budgets into a cohesive and comprehensive financial roadmap. This essential training course focuses on Master Budget Creation & Integration, equipping participants with the skills to develop a unified financial plan that aligns operational goals with strategic objectives. You will learn how to create individual budgets for sales, production, expenses, and capital expenditures, and then seamlessly integrate them into a powerful master budget that provides a holistic view of the organization's financial future. Mastering master budget creation & integration is crucial for effective financial management, performance monitoring, and strategic decision-making.

This intensive training course delves into the practical steps involved in developing a comprehensive financial plan. We will explore the interrelationships between various component budgets and how to consolidate them into a cohesive master budget. Participants will learn how to create pro forma financial statements (income statement, balance sheet, and cash flow statement) derived from the master budget, enabling them to forecast financial performance and assess overall financial health. By the end of this training course, you will be equipped with the knowledge and skills to confidently create, integrate, and utilize a master budget as a vital tool for strategic financial management.

Target Audience

• Finance Managers
• Budget Analysts
• Accountants
• Controllers
• CFOs
• Business Owners
• Strategic Planning Professionals

Course Objectives

• Understand the purpose and components of a master budget in financial planning.
• Learn how to develop individual budgets for sales, production, direct materials, direct labor, and overhead.
• Master the process of creating a sales forecast as the foundation of the master budget.
• Understand how to integrate various operational budgets into a comprehensive master budget.
• Learn how to develop a budgeted income statement (pro forma income statement) from the master budget.
• Master the creation of a budgeted balance sheet (pro forma balance sheet) based on the master budget.
• Understand how to prepare a budgeted cash flow statement (pro forma cash flow statement) derived from the master budget.
• Explore the use of supporting schedules in the master budget process.
• Learn how to utilize the master budget for performance monitoring and variance analysis.
• Understand the role of assumptions and sensitivity analysis in master budget creation.
• Explore the use of budgeting software and tools for master budget development and integration.
• Learn how to communicate the master budget effectively to different stakeholders.
• Develop a practical framework for creating and integrating a master budget for your organization.

Duration

5 Days

Course Content

Module 1: Understanding the Master Budget Framework

• Defining the master budget and its role as a comprehensive financial plan for your module.
• Identifying the key components of a master budget (operating budget and financial budget).
• Understanding the interrelationships between different budget components.
• Exploring the benefits of using a master budget for planning and control.
• Reviewing the steps involved in the master budget creation process.

Module 2: Developing Individual Operating Budgets (Sales, Production)

• Mastering the creation of a sales forecast, the foundation of the master budget for your module.
• Learning how to develop a production budget based on sales forecasts and inventory policies.
• Understanding the components of a direct materials budget and its link to the production budget.
• Learning how to develop a direct labor budget based on production requirements.
• Creating a manufacturing overhead budget, including both fixed and variable costs.

Module 3: Developing Individual Operating Budgets (Expenses)

• Understanding the components of a selling and administrative expense budget for your module.
• Learning how to forecast marketing, sales, and administrative costs.
• Developing a research and development (R&D) expense budget, if applicable.
• Creating a budget for other operating expenses.
• Integrating all operating expense budgets into the master budget framework.

Module 4: Integrating Operating Budgets into the Master Budget

• Understanding the flow of information from individual operating budgets to the master budget for your module.
• Consolidating sales, production, and expense budgets into a unified operating budget.
• Ensuring consistency and accuracy across all budget components.
• Utilizing spreadsheet software or budgeting tools for budget integration.
• Reviewing and reconciling interdepartmental budget dependencies.

Module 5: Creating the Budgeted Income Statement (Pro Forma)

• Understanding how to prepare a budgeted income statement based on the integrated operating budget for your module.
• Incorporating sales revenue, cost of goods sold, and operating expenses.
• Calculating budgeted gross profit and operating income.
• Including interest expense and income tax expense to arrive at budgeted net income.
• Analyzing the budgeted income statement to assess projected profitability.

Module 6: Creating the Budgeted Balance Sheet (Pro Forma)

• Understanding the components of a budgeted balance sheet, including assets, liabilities, and equity for your module.
• Forecasting changes in asset accounts (e.g., cash, accounts receivable, inventory, fixed assets) based on the master budget.
• Projecting changes in liability accounts (e.g., accounts payable, salaries payable, loans payable).
• Estimating changes in equity accounts (e.g., retained earnings).
• Ensuring the budgeted balance sheet adheres to the fundamental accounting equation.

Module 7: Creating the Budgeted Cash Flow Statement (Pro Forma)

• Understanding the different sections of a budgeted cash flow statement (operating, investing, financing activities) for your module.
• Projecting cash inflows and outflows related to operating activities based on the master budget.
• Forecasting cash flows related to the purchase and sale of long-term assets (investing activities).
• Projecting cash flows related to debt and equity financing (financing activities).
• Analyzing the budgeted cash flow statement to assess projected liquidity.

Module 8: Supporting Schedules, Analysis, and Communication

• Developing supporting schedules for key budget components (e.g., cost of goods sold, inventory) for your module.
• Performing variance analysis to compare actual results to the master budget.
• Utilizing sensitivity analysis to assess the impact of changes in key assumptions.
• Communicating the master budget and its underlying assumptions to relevant stakeholders.
• Using the master budget as a tool for performance evaluation and strategic decision-making.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre.

We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.