Financial Times Essential Guide to Budgeting and Forecasting, The

Nigel Wyatthas been running his own financial training consultancy – Magenta Financial Training since 1991. Nigel has worked with a wide range of organisations, including many blue-chip companies. In recent years he has worked extensively abroad, including India, China, Oman, Saudi Arabia, UAE, Kuwait and Jordan. Most of the training programmes Nigel delivers are aimed at non-financial managers.

• ContentsAbout the authorAcknowledgementsIntroductionPart 1 Preparing your budgets1 What is the budget for?IntroductionThe role of budgets – why do we have them?1 Meeting the organisation’s objectives2 Planning3 Monitoring and controlling4 Co-ordinating5 Evaluating performance6 Improving performance7 Motivating managers8 Management contract9 Communicating10 Providing a basis for authorising expenditure and delegating responsibility11 Identifying scarce resources12 Allocating resources13 Demonstrating and delivering good corporate governanceLinking budgets to strategy and policyBudgets for special purposesPlanning periods2 What is a forecast and how does it differ from a budget?What is the difference between a budget and a forecast?Benefits of forecasting ‘beyond the wall’Forecasts, projects and contractsForecasting tools and techniquesSales forecastingQuantitative forecasting using Microsoft ExcelUseful Excel toolsForecast frequency and automationMeasuring and improving forecast accuracyForecast financial statementsNew product sales forecastingOther factors to consider in sales forecasts3 Essential background financial skills for budgetingCheaper is not always better: cost and value in budgetingAccruals, cash and commitment accounting and budgetingUnderstanding profit and loss account figuresReview of accruals accountingDirect and indirect methods of producing cash flow accountingThe balance sheetThe master budget CostsValue analysis and value engineeringActivity based costing (ABC)The breakeven modelCost structureCapital expenditure planning4 How should the budget be built?IntroductionBuilding budgetsIncremental budgetingZero based budgetingActivity based budgetingShould budgets be top-down or bottom-up?Fixed v flexible budgetsExternal comparison driven budgetsVFM, outcome orientated and evidence based budgetsThe power of evidence in protecting budgetsGood budgeting practice and ideas for constructing a budgetSetting budgets for contingenciesThe challenge processBuilding budgets and performance measurementThe budget gamePresenting budgets5 How should cash be budgeted and controlled?Planning systems and cash flow forecastingManaging working capital – cash and riskManaging trade debtors (accounts receivable)Managing stock (inventory)Managing trade creditors (accounts payable)Cash flow in a business 6 How should capital expenditure be budgeted for?What is capital expenditure?The payback ruleNPV and DCFCapital rationing: profitability indexStrategic fit and ‘roadmaps’Sensitivity analysisRiskPost-investment appraisalLong-term cash flow planningAsset rep