Spreadsheet Skills For Planning, Forecasting And Budgeting

Category: Spreadsheet Skills For Planning, Forecasting And Budgeting

Course Description

This hands-on, practical course will demonstrate how you can develop spreadsheet models to create a forecast, which can then be utilised to generate business plans and operating budgets with the use Excel® as it is used in practice. The applications will be focused on three crucial aspects of business and financial management – strategic planning, intelligent forecasting and realistic budgeting. Delegates will learn how accessible the power of Excel® is to provide realistic forecasts and prepare flexible budgets. The impact on efficiency in planning and control and therefore return on investment for companies and/or divisions will be startling.

This course will feature:

  • Mastery of the power of Excel®
  • What functions to use from the Excel toolkit
  • Principles of strategic planning and budgeting
  • Mathematical forecasting models will be demystified
  • Building financial models enabling “what if” analysis

Course objectives

  • Navigate through the features and functions of Excel®
  • Distinguish between data and output in spreadsheet architecture
  • Analyze financial statements in order to plan ahead
  • Build effective financial planning models
  • Use forecasting techniques for budget preparation

Course Outline

  • The power of Excel® for building financial models
  • The Ribbons of Excel with their commands and functions
  • Using formulae: Copying, anchoring and special pasting
  • Using functions: financial, statistical and mathematical
  • Review of the financial objectives of business: ROI, ROA, ROE
  • Overview of Financial Statements
  • Proper Planning

    • Classical strategic planning models
    • Cost-Volume-Profit Analysis and Break-Even as a planning example
    • Economic Order Quantity as a planning example
    • What-if analysis to build scenario’s and test sensitivity
    • Maximizing and optimizing techniques
    • Linear programming and Solver as optimising tools
  • Fantastic Forecasting

    • Forecasting in perspective – the Past vs. the Future
    • Necessity to apply a range of different forecasting methods:
    • Qualitative Models used in forecasting
    • Quantitative Models focussing on time series and regressions methodology
    • Forecasting growth rates
    • Recording, applying and modifying forecast assumptions
  • Beyond Budgeting

    • The budget process: Timing and Cycles
    • Setting budgeting objectives and tolerance levels
    • Budgeting Techniques
    • “Beyond Budgeting” compared to traditional budgeting principles
    • Operating and Capital budgets
    • Monthly reporting procedures and timely action
  • Putting it together – building the comprehensive model

    • Considering the financing mix in strategy
    • Considering the Return to Shareholder as the primary indicator
    • Build your planning model
    • Build your forecasting model
    • Build your budgeting model
    • Link these together in review

    Case Study: Building an integrated planning, forecasting & budgeting model