This course provides a framework for preparing an operating budget that will be accurate and useful and aid in forecasting future performance for your company or organization. An operational budget will show your financial plan for the next year and identify potential risk areas that can be mitigated. Key performance indicators will show how operating activities relate to each other. Participants will learn to compare actual performance to the budget and learn the strengths and weaknesses in their plan. The following sectors are explored: manufacturing, retail, service, not for profit, and the public sector.

Learning Objectives

  1. Explain why operating budgets are important to achieve success in any organization. 
  2. Compare the benefits of incremental versus zero based budgeting methods.
  3. Explain how key performance indicators can help prepare operating budgets.
  4. Identify the major components of an operating budget.
  5. Identify the types of expenses that should be included in an operating budget.

Topics Covered

  • Benefits of having an operating budget
  • Incremental vs zero based budgeting methods
  • Key performance indicators
  • Detailed analysis and breakdown of an operating budget
  • Types of expenses 
  • How to address risk 


Arun K. Mathur, FCPA, FCA, LPA

Founder and Lead Instructor, UltimQuest Knowledge Inc.

Arun is Partner at Gerald Duthie & Co. LLP, where he provides professional services to a diverse group of clients. Arun is also Owner and Lead Instructor at UltimQuest Knowledge Inc. He has been delivering corporate training on improving governance, ethics, internal control, performance measurement and related topics. He provides live and online training through CPA bodies across Canada and Bermuda. Arun served for several years on the Board for HealthForce Ontario Marketing and Recruitment Agency, and was also Chair of the Finance and Audit Committee there and for the Trillium Gift of Life Network. He has served on the CMA Ontario's Review Committee prior to the merger.