Friday, Dec 31, 2021
8:00am – 9:46am
The annual budgeting process is often criticized as an accounting exercise that is obsolete soon after it is published, prone to gamesmanship, cumbersome, not volume sensitive, and disconnected from the organization's strategy and risk management processes. You can resolve these deficiencies using capacity-sensitive driver-based projections. Driver-based budgeting allows for quick scenario planning and far easier analysis of a growing organization whose future may look nothing like today. The driver-based budgets can be periodically refreshed to create rolling financial forecasts extending well beyond the fiscal year end. Learn how managerial accounting can become managerial economics.
Major Subjects
The shift to “predictive accounting” for Decision Making, Planning, and Budgeting
Problems with traditional annual budget processes
Develop a driver-based “operational budget” based on resource capacity planning
Classify resource capacities and their expenses as sunk, fixed, step-variable, and variable
Create closed loop capacity plans
Forecast demand for budgeting and rolling financial forecasts
Use probable scenario planning
Prerequisites
Some budgeting experience is helpful
