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Quick Look Course Summary:Business Unit Budgeting: Apply the Budget Function (3 days)
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Length: 3 day(s)
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Price (at your venue): 1 Person R 14,997 EX VAT 3 Person R 11,205 EX VAT 10 Person R 8,042 EX VAT
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Certification Type:Non-Accredited
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Locations & Venues: Off-site or in-house. We train in all major city centres throughout South Africa.
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Business Unit Budgeting: Apply the Budget Function (3 days)
Managers who build a budget they can defend, and then keep their unit on it for the whole year.
A business unit budget is more than last year's figures plus inflation. It is the unit's operational plan expressed in rand, and the manager who owns it has to analyse what the unit really needs, argue for it, and then control spending against it for twelve months. This budgeting course takes business unit managers through that whole cycle.
Day one analyses budget needs: the role of the budget in planning and decision-making, the parts of a unit budget, revenue sources, cost drivers and cost structures, and how to use historical data, market trends and business objectives to arrive at realistic figures. Day two builds the proposed budget: income projections, expense estimates, capital items, contingencies and risk, and the motivation and presentation that justify it to stakeholders. Day three is control: recording actuals, comparing them with the budget, analysing variances, taking corrective action and reforecasting.
Delegates work on a budget for their own unit throughout, using a spreadsheet template, and present it for feedback on day two. Public-sector groups can work within the PFMA or MFMA budget cycle.
Why this course
For your organisation
- Budget proposals grounded in analysis, not last year's figures plus a percentage
- Managers who can justify their numbers to finance and executive committees
- Earlier detection and correction of budget variances
- Contingencies and risks built into the budget from the start
For your delegates
- A draft budget for your own unit, built during the course
- A spreadsheet template for tracking actuals and variances
- Practice presenting and defending a budget
- A monthly routine for budget monitoring
What delegates will be able to do
- Explain the role of the budget in planning, decision-making and control in a business unit
- Identify the parts of a business unit budget and the information needed for each
- Analyse revenue sources, cost drivers and cost structures to determine budget needs
- Use historical data, trends and business objectives to estimate realistic income and expenses
- Draft a proposed budget with contingencies, aligned to the unit's goals
- Present and justify the proposed budget to stakeholders
- Compare actual results with the budget, analyse variances and recommend corrective action
- Update forecasts during the year without losing control of the original budget
Who should attend
Business unit, department and branch managers, cost-centre owners, project managers who manage a budget, finance officers and analysts who support budget holders, and owners of growing businesses. Delegates should be comfortable with basic spreadsheet work.
Course outline
Day 1 – Analysing budget needs
The budget in business unit management
- Why budgeting matters for a business unit
- The budget as the operational plan in figures
- Planning, decision-making and control
- The annual budget cycle and who is involved
Parts of a unit budget
- Income or revenue budget
- Operating expense budget
- Staff cost budget
- Capital budget
- Cash flow budget
Assessing the unit's financial needs
- Gathering information from operations, HR and finance
- Identifying revenue sources and estimating income
- Cost drivers and cost structures
- Fixed and variable costs
Using data to estimate
- Analysing historical data
- Market trends, inflation and supplier price increases
- Aligning the figures with business objectives
- Zero-based versus incremental budgeting
Day 2 – Building and justifying the proposed budget
Drafting the proposed budget
- Revenue projections
- Expense estimates line by line
- Phasing the budget across the year
- Building the budget in a spreadsheet template
Risk and contingency
- Identifying financial risks to the plan
- Contingency amounts and when to use them
- Best-case, expected and worst-case scenarios
- Documenting assumptions
Justifying the budget
- Writing a budget motivation
- Linking each request to an outcome
- Anticipating questions from finance and executives
- Handling cuts without losing priorities
Presentation practice
- Presenting your unit's budget
- Peer and facilitator feedback
- Revising the budget after review
Day 3 – Monitoring and controlling the budget
Tracking actuals
- Setting up a system to record actual income and expenses
- Monthly management reports
- Commitments and accruals
- Reconciling with the finance department's figures
Variance analysis
- Calculating variances
- Favourable and unfavourable variances
- Price, volume and timing differences
- Explaining variances in plain language
Corrective action
- Options when spending runs over
- Moving money within the budget and the approval rules
- When to escalate
- Reforecasting during the year
Budget control routine and close
- A monthly budget control routine for your unit
- Personal action plan
- Evaluation and close
How it is delivered
Three days, 08:30-16:00. In person at your offices anywhere in South Africa, at a BOTI venue, or live online. One delegate or a group of up to 20. Delegates need a laptop with a spreadsheet program (laptops can be supplied on request); workbook and budget templates included. We deliver it at your offices in Johannesburg, Pretoria, Durban, Cape Town and anywhere else in South Africa, at a BOTI venue in Johannesburg, or live online for teams in different places.
What our clients say
“The course was efficiently scheduled and planned around our timetable. We were impressed by the quality of training”
“All training sessions were well-coordinated, professionally delivered, and aligned with our scheduling requirements. We were particularly impressed by the high standard of facilitation and the depth of expertise demonstrated throughout the programmes.”
“All training sessions were well-coordinated, professionally delivered, and aligned with our scheduling requirements. We value the partnership and look forward to continued collaboration with Business Optimization Training Institute in the future.”
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Frequently asked questions
Can you run this course at our offices?
Yes. Most groups are trained at the client's premises anywhere in South Africa; we can also host it at a BOTI venue or deliver it live online.
How is this different from Finance for Non-Financial Managers?
Finance for Non-Financial Managers covers the financial statements, ratios and budgeting in two days. This course spends all three days on the budget itself – analysing needs, building and justifying the proposal, and controlling it through the year.
Can delegates work on their real budget?
Yes, and we encourage it. Bring last year's figures and this year's plan; confidential numbers can be scaled or anonymised.
Is it accredited?
No – it is a non-accredited short course and delegates receive a BOTI certificate of attendance.
How many people can attend?
From one delegate to groups of about 20. The price per delegate drops as the group grows – see the price table, or ask us for a quote.
Can you run this course in Johannesburg, Cape Town or Durban?
Yes. We train on site at your offices in Johannesburg, Pretoria, Durban, Cape Town and across South Africa, at a BOTI venue in Johannesburg, or live online so a team spread over several offices can attend together.
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