Budgeting for non-financial managers - Learnbox

Budgeting for non-financial managers

Gain clarity in your budgeting process by learning how to assemble a complete set of budgets along with supporting procedures, controls, and reports. You’ll also learn how to set up the often overlooked cash budget and the differences between incremental and zero-base budgeting.

Lesson Information

Lesson 1

Objectives of budgeting

This lesson presents an overview of the budgeting process, why it is necessary to draw up budgets, covers the characteristics of budgets and ultimately speaks to the objectives of budgeting. In this lesson you will cover the following topics:

  • An introduction to budgeting
  • Characteristics of a budget
  • The objectives of a budget

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Lesson 2

Types of budgets

The types of organisational budgets are covered in this lesson. You will be guided through the details related to organisational budgets and the aspects around them under the following topics:

  • Strategic budgets
  • Tactical budgets
  • Operational budgets

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Lesson 3

Responsibilities and approval of budgets

This lesson addresses the responsibility of budget owners. Not only does it cover what responsibilities exist, but also who is responsible, what they are responsible for and what those responsibilities entail. The topics in this lesson cover:

  • Overall responsibility
  • Functional department managers
  • Functional budgets

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Lesson 4

Determining the principle budgeting factors

This lesson addresses principle budgeting factors, what they are, what restrictions they initiate, what impact it can have on an organisation and what consequences it can hold should it be ignored. It also explores common principle budgeting factors and how to approach them. The topics in this lesson are:

  • What is a principal budgeting factor?
  • Most common principal budgeting factors
  • Implications of ignoring principal budgeting factors

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Lesson 5

Budget types

This lesson addresses different budgets, where they fit into the budgeting sequence and how and why they are dependent on one another. It gives a great insight into how functional departmental managers cannot budget in isolation and how budgets influence one another.

  • Sales budgets Production budgets
  • Raw materials budgets
  • Labour budgets

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Lesson 6

The cash budget

The principal budgeting factor, cash, is dealt with in this lesson. It explains what the cash budget entails and addresses cash inflows and cash outflows practically. The topics in this lesson will guide you through:

  • What is a cash budget?
  • Preparing cash inflows
  • Preparing cash outflows

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Lesson 7

Alternative approaches when budgeting

This lesson details incremental and zero-based budgeting and discusses the differences and details between them. It also touches on the details related to budgeting control. Topics in this lesson include:

  • Incremental and zero-based budgeting
  • Characteristics of good budgeting control
  • Incremental vs zero-based budgeting

Expert Presenter

Elton Pullen

Elton Pullen is a senior lecturer and section head of Managerial Accounting and Finance at the University of the Western Cape. Elton is a Chartered Accountant and holds a Master’s Degree in Financial Management from the University of Cape Town. In 2017, he was a finalist in the South African Institute of Chartered Accountants (SAICA) Top 35 CA’s under 35 competition. He is currently pursuing a PhD in Accounting Educational Philosophy at the University of Stellenbosch. Elton’s commercial industry experience includes roles as Audit Manager and Financial Manager at one of the Big 4 firms. His practical experience and passion for teaching enables him to simply explain even the most complicated financial concepts.

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