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Predictive Accounting: Driver-Based Budgeting & Rolling Financial Forecasts

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Online, OK 00000

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2.00 Credits

Member Price $79

Non-Member Price $109

Overview

The annual budgeting process is often criticized as an accounting exercise that is obsolete soon after it is published, prone to gamesmanship, cumbersome, not volume sensitive, and disconnected from the organization's strategy and risk management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.

Highlights

  • 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
  • Integrating enterprise risk management (ERM) with management accounting
  • Applying target costing for cost estimating

Prerequisites

Some budgeting experience is helpful

Designed For

CFOs, Controllers and other corporate financial professionals

Objectives

  • Understand how to create driver-based budgets and rolling financial forecasts

Preparation

None

Leader(s):

Leader Bios

Gary Cokins, ACPEN Business Professionals Network

Gary Cokins, MBA, CPIM is an internationally recognized author and speaker. He spent 30 years working with the consulting practices of Deloitte, KPMG, EDS and SAS. Gary has a BS in Industrial Engineering from Cornell University and an MBA from Northwestern University’s Kellogg School of Management. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics published by Wiley and Sons.

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Non-Member Price $109

Member Price $79