FINANCE ANALYSIS, COSTING, MODELLING AND BUDGETING

DAY 1

Session One: Essentials budgeting and forecasting basics

• Reviewing the basic financial building blocks: – Income Statement – Balance Sheet – Cash Flow as basis for budgeting.
• Setting objective of the business: Is the budget in-line with the target of the shareholders?
• Department budget components
• Budget creating analysis and forecasting strategies
• Strategies for aligning the department budget

Case Studies Analysis

Is your budgets well equipped to deal with external trends in the industry?

Session Two: Collaborative Budgeting and Forecasting Techniques

• Increasing participation of various department in the budgeting and forecasting process
• Working hand-in-hand with aviation associations and experts that help spot industry trends and forecast potential happenings in areas such as new airlines entrants, demand, prices and labour cost.
• Putting your corporate strategy at the forefront of the budgeting process: Is this the way moving forward?
• Understanding company’s financial management information systems
• Understanding the accepted industry budgeting and finance standards
• Identify weaknesses in your company’s department budget and suggest ways of improvement to optimise the accuracy and minimise potential deviations from the budget

Session 3: Introduction and overview of Financial Modelling

Training method: Requires hands on excel using laptop

• Define the Terms Model and Financial Model.
• Learn the 10 steps to create good Financial Models.
• The 12 steps to Improving traditional Financial Models.
• Use Flowcharting Techniques to improve your model.

Modelling and Reporting techniques-Tips for best practice structure and design of financial models

• Separation of inputs, calculations and outputs
• Avoiding hard coding
• How to best include adjustments
• Effective styling to purpose
• Indicators of risk and mitigating the risk of error
• Using reconciliations and zero checks.
• Tips for effective reporting

Key practical formulas for financial data analysis, validation and modelling

Understanding Financial Functions and hands on session

• Using PMT
• Using FV
• Using NPV
• Using PV
• Using RATE
• Using EFFECT
• Using NOMINAL

Understanding Data Lookup Functions

• Using VLOOKUP
• Using VLOOKUP for Exact Matches
• Using HLOOKUP
• Using INDEX
• Using Match
• Using SUM IF and SUM IFs

DAY 2

Session 4: Monitoring Budgets and Forecast essentials

• Prepare and identify cost recovery plans (e.g., charge backs)
• Using periodic financial reports to monitor budget progress
• Using budgets for planning and control
• Business plans and policies
• Understand accounting policies and procedures related to revenue and expense recognition
• Strategies for monitoring and controlling revenues and expense

Session 5: Increasing Organisations’ Competitive Advantage through Value Costing

• Understanding the importance of using relevant costs for decision-making models.
• Terminology, valuation principles and financial reports.
• Accurately estimating different costing categories: Fixed, Variable and Semi-Variable
• Recognising seasonality trends in the business that can influence cost forecasting
• Case Study exercise: Participants will be given cost data and related supporting information from which you will create forecasting models, standard costs/budget values as well as estimating the fixed and variable behavior of the costs •
• Uncovering business challenges in cost management and segregating them into fixed, variable and semi-variable categories
• Principles of sunk costs, operating costs, appraisals and bench marking

Section 6: Capital Budgeting.

Depths of capital budgeting long-range financial plan with key analysis

• Build forecast models using exponential smoothing method
• Use exponential growth rate by plotting data into scatter plots, and perform correlations analysis between business indicators for growth rate prediction.
• Introduction to What If Analysis AKA Sensitivity Analysis
• Use Solver to search feasible solutions and decide on the most optimal choice
• Use Break-even analysis
• Identify major financial ratios.
• Use Financial Ratios to Measure a Firm’s Financial Performance in financial forecasts and plans.