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LinkedIn Learning

Accounting Foundations: Budgeting

via LinkedIn Learning

Overview

Learn how to construct a budget to help your small business make decisions and evaluate future performance.

Running an organization without a proper budget (or serving as a manager without insight into your organization's budgeting framework) is an exciting and overwhelming existence. Harnessing the power of a budget gives you the ability to identify challenges and develop strategies on paper to avoid or adapt to those surprises in advance. This course covers the construction of purchase budgets, production budgets, hiring budgets, overhead budgets, and cash budgets. Professors Jim and Kay Stice help you weigh the impact of budgeting on employee morale and show how budgets pay off in the future when you can use them to evaluate your business performance.

Syllabus

Introduction
  • Harness the power of budgets to solve problems
  • What you need to know
1. The Budgeting Process in Organizations
  • How does budgeting affect people?
  • The budgeting process
  • Behavioral considerations in budgeting
  • Involving people in the budgeting process
2. Budgeting in Manufacturing Firms
  • Hong Kong and the typhoon border shutdown
  • The master budget
  • Master budget exercise: The sales budget
  • Factors to consider in your sales budget
  • Closer look at our sample sales budget
  • Master budget exercise: The production budget
  • Master budget exercise: The direct materials budget
  • Tips on maintaining accounts payable on raw materials
  • Master budget exercise: The direct labor budget
  • Master budget exercise: The manufacturing overhead budget
  • The SG&A budget
  • What a master budget can tell you about your business
3. Budgeting in Merchandising and Service Firms
  • Do we have enough motherboards?
  • Budgeting for merchandising firms
  • Merchandising firms purchases budget
  • Developing a sales budget for a service firm
  • Sales budget example for a service firm
  • Supplies and labor budget example for a service firm
  • Overhead and SG&A budget example for a service firm
  • Completing the cash budget
4. Cash Flow Budgeting
  • Living from paycheck to paycheck
  • Cash receipts and payments
  • Financing
5. Flexible Budgeting
  • Using the right benchmark
  • Weakness with static budgeting
  • Using the flexible budget
Conclusion
  • The next steps to grow your budgeting skills

Taught by

Jim Stice and Kay Stice

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