Business Finance Training from CBT Direct

Practical Budgeting Skills for Business Curriculum Outline

Creating and Analyzing an Operating Budget

Overview/Description
Working without a well thought-out operating budget can be compared to playing Pin the Tail on the Donkey. Although a company might know the direction in which it wants or needs to go, without a budget it must simply feel around in the dark and hope it comes close to its target. Unfortunately, if a business uses this approach, it will eventually fall victim to cash flow problems that could result in its downfall. As many would agree, the budget process in any business can be challenging and time-consuming. However, for a business to survive long-term, it must have a clear view of its goals and its means of achieving those goals. A well-planned budget is just the tool to help steer your company in the right direction--your company will be able to make critical decisions based on current facts and reasonable forecasts. In this course, you will learn the key components of an operating budget and be able to create a budget that you can manage and control. You will also learn various techniques to analyze your financial information, address variances, and, as a consequence, improve your companys operational performance and profitability.

Target Audience
Managers, assistant managers, and finance staff with budgeting responsibilities as well as non-financial executives

Expected Duration
3.5 hours

Lesson Objectives:

Creating an Operating Budget

Recognize the value of understanding the basics of an operating budget.

Distinguish among examples of different types of cash flow activities.

Calculate projected revenue for a given business example.

Match top-down and bottom-up budgeting approaches to descriptions of their corresponding advantages and disadvantages

Identify examples of the key components of an operating budget.

Derive the values for the key components of an operating budget for a hypothetical business.

Analysis of Business Profitability

Recognize the importance of analyzing business profitability.

Match fixed and variable costs to examples.

Sequence examples of the steps to calculate the break-even revenue point.

Calculate the break-even revenue point for a hypothetical company.

Follow the procedures to calculate the profit-revenue level for a given budget plan.

Calculate the variance percentage for hypothetical budget line items.

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The Ins and Outs of Capital Budgeting

Overview/Description
Capital budgeting is an essential part of every companys financial management. It involves examining investment assets and deciding whether or not those assets will achieve the companys desired returns over an extended period of time. To effectively manage your companys finances, you must evaluate a number of factors in making investment decisions. This course will explain what a capital budget is and present the different types of assets that your company will inevitably encounter. It lists several factors that influence fixed asset acquisitions. The course illustrates how to evaluate acquisition of fixed assets before you spend any money. The course teaches you the concept of the Time Value of Money and shows you how to use this information as well as Net Present Value, Profitability Index, Internal Rate of Return, and Payback Period to evaluate different investments. The unification of the information and tools presented in this course will assist you in effectively managing your companys finances with confidence.

Target Audience
Managers, assistant managers, and finance staff with budgeting responsibilities as well as non-financial executives

Expected Duration
3.5 hours

Lesson Objectives:

Asset Management

Identify the importance of proper asset management.

Match capital budget components to corresponding examples.

Identify examples of the rules necessary to balance a capital budget.

Apply the rules necessary to balance a given companys capital budget.

Identify the current assets of an organization.

Match factors that influence a companys decision to acquire a fixed asset to corresponding examples.

Examine a given business scenario to ascertain on what basis a company should or should not acquire a fixed asset.

Return on Investments

Recognize the importance of using capital budgeting tools to determine return on investments.

Sequence the calculation steps in an example of a time-value calculation.

Calculate the time value of given investments.

Calculate the net present value of a given investment that has even cash flows over its useful life.

Use the profitability index to determine if a given investment should be accepted based on its return on investment (ROI).

Utilize the internal rate of return method to determine whether a given investment decision is appropriate.

Employ the payback period method to evaluate a given investment opportunity.

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Effective Budget Management

Overview/Description
A priority of effective budget management is to take steps to ensure that businesses create a manageable and controllable budget and to prevent cash crunch situations from developing. To effectively manage your budget, you need to understand the elements of the various budgets and understand the importance of ongoing monitoring and analysis of their individual components. In this course, you will learn how to develop a cash budget and utilize various techniques to determine a companys current or desired cash flow and liquidity levels. You will also learn various techniques to monitor and control your companys budgeted costs as well as the appropriate corrective actions to address issues that might arise. After completing this course, you will be able to apply your newfound knowledge to effectively manage you companys budget.

Target Audience
Managers, assistant managers, and finance staff with budgeting responsibilities as well as non-financial executives

Expected Duration
3.0 hours

Lesson Objectives:

Cash Flow Analysis

Recognize the value of being able to analyze a companys cash flow.

Select examples of the approaches used to regulate cash flow.

Match key components to cash budget examples.

Use the key components to create a cash budget in a given scenario.

Use the cash flow pro forma approach to determine if a given company has a projected cash shortage or surplus.

Use inventory ratios to assess a given companys level of liquidity.

Budgetary and Expenditure Control

Recognize the importance of maintaining budgetary and expenditure control.

Determine if a given companys budget is on track.

Match fixed and variable cost strategies for controlling costs to examples.

Apply the appropriate corrective action to address a given companys budgeting issue.

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Practical Budgeting Skills for Business

Operating business finance for an organization without a properly delineated operating budget can be compared to attempting to shoot a target blindfolded. Although a company might know the direction of the target, without a budget, it must simply firing randomly and hope it hits the bulls-eye. Unfortunately, if a business uses this approach, it will eventually fall victim to business accounting and cash flow problems that will result in its financial instability and eventual downfall. As many would agree, the budget process in any business can be challenging and time-consuming, however, for a business to survive long-term it must have a clear view of its goals and how it can financially achieving those goals. It is through the application and use of practical budgeting skills for business finance that an organizations leadership can insure every shot is on target.

Capital budgeting is an essential part of every company's financial management. Setting up a business finance budget is not as easy as most would imagine, due to the multitude of factors that must be taken into account, including the examination of investment assets and deciding whether or not those assets will achieve the organizations desired returns within a given period of time. Those with the skill to examine every facet of the supply and demand infrastructure of business financing and still achieve a practical and balanced budget for an organization are invaluable to the company as it is their skill in business accounting that enables the group to continue their goal of continued profitability. With CBT Direct’s online training for Practical Budgeting Skills for Business Finance you will learn everything you need to effectively manage any capital budget!

Benefits of CBT Direct’s Online Training for Practical Budgeting Skills for Business Finance

CBT Direct boasts the most beneficial online training on the market. With CBT Direct’s online training, you have the flexibility to study on your schedule, and with the speed and reliability of the internet, CBT Direct’s Practical Budgeting Skills for Business Finance training course is accessible anywhere you have an internet connection. Convenience finally costs less with CBT Direct - the most affordable online training solution today.

The unique design of CBT Direct’s Practical Budgeting Skills for Business Finance course emphasizes learner initiative, self-management and experiential learning. CBT Direct’s online course design begins with the definition of user-focused performance objectives and then proceeds to the selection and implementation of instructional strategies and learning activities appropriate for those objectives. This effective instruction model for CBT Direct’s Practical Budgeting Skills for Business Finance training course ensures the greatest level of comprehension and retention.

Who Benefits from CBT Direct’s Online Training on Practical Budgeting Skills for Business Finance?

Managers, Assistant Managers and finance staff with business accounting responsibilities as well as non-financial executives looking to acquire basic business finance skills for budget issues.

What Professionals Will Learn from CBT Direct’s Online Training on Practical Budgeting Skills for Business Finance

The course will prepare future business finance experts by explaining what a capital budget is and presenting the different types of assets that your company will inevitably encounter while listing several factors that influence fixed asset acquisitions.

The course will show how to evaluate acquisition of fixed assets before the funds are utilized. Students will be shown the concept of the Time Value of Money and shown how to use this information as well as Net Present Value, Profitability Index, Internal Rate of Return, and Payback Period to evaluate different investments for business accounting purposes. Click here to see a detailed curriculum outline.

Business accounting students will learn how to develop a cash budget and utilize various techniques to determine a company's current or desired cash flow and liquidity levels.

You will also learn various techniques to monitor and control the company's budgeted costs as well as the appropriate corrective actions to address issues that might arise. You will learn how to identify the current assets of an organization as well as examine given business financing scenarios to determine whether an organization should seek to acquire a fixed asset.

Once an asset has been determined as profitable by proper business accounting methods, students will be shown how to sequence the time-value calculations for the profitability index to determine the Return on Investment (ROI) of the asset, as well as the payback period for the given investment.

Our Training will provide students with the ability to determine and regulate an organizations cash flow by creating cash budgets and using the cash flow pro forma approach to determine if there is a project shortage or surplus of funds for a groups business financing.

Once the inventory ratio has been determined for a company’s level of liquidity, individuals will be shown how to determine if the business finance budget is on its projected track and how to apply appropriate corrective actions to address a given budget issue.

CBT Direct’s online training for Practical Budgeting Skills for Business Finance will deliver what you need to know to quickly and effectively balance your budget issues!

Practical Budgeting Skills for Business