Ultimquest Knowledge

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