FP&A: Building a Company's Budget

Curriculum

• Getting Started with Financial Planning & Analysis

  2 Lessons 9 Min

  In the introductory lesson of this FP&A course, we present the basic budgeting principles. You will learn why companies need a budget and how to build a personal budget using a standard template.

  What does the course cover Free What is a Budget and Why do we Need it? Free
• The Accounting Framework

  7 Lessons 42 Min

  This section provides the foundational accounting knowledge and skills required to earn a financial planning and analysis certification. We examine the core financial statements that companies prepare—the Income Statement, Balance Sheet, and Cash Flow Statement. Exploring how these interrelate will help us use them in a complete budgeting model later on.

  Major Financial Statements Free Understanding the Income Statement Understanding the Balance Sheet Understanding the Cash Flow Statement_Part 1 Understanding the Cash Flow Statement_Part 2 Direct vs. Indirect Cash Flow Statement Major Interrelationships between the Financial Statements
• Mechanics of The Budgeting Process

  9 Lessons 40 Min

  In the last theoretical section of this FP&A course, we discuss the importance and mechanics of the budgeting process, the key budget preparation steps, and the difference between short-term and long-term planning. You will also learn the difference between budgeting and forecasting, who is responsible for preparing and updating the budget, and the meaning of a Master Budget.

  The Importance of Budgeting Key Steps in the Budget Preparation The Budget Horizon The Budgeting Levels of Detail Budgeting Approaches Updating the Budget Who Prepares the Budget? The Master Budget The Budget Sign-off
• Time for a Case Study: Henry's Hats

  15 Lessons 84 Min

  In this section, you will have the chance to apply everything you have learned in this FP&A training. Together, we will build a complete budget model in Excel using the historical financial information of a fictitious company called Henry’s Hats. You will learn how to forecast revenue, COGS, various types of expenses, fixed assets, long-term liabilities, and others.

  Henry's Hats - Company Overview The Bottom-up Approach The Top-Down Approach Understanding COGS Calculation Volume of Production Direct Materials and Direct Labor Production Overheads The COGS Budget The Payroll Budget The SG&A Budget Balance Sheet Items The Cash Conversion Cycle The Working Capital Budget The Fixed Assets Budget Loan Repayment Schedule
• Putting It All Together

  5 Lessons 31 Min

  In the final section of the FP&A course, you will prepare Henry’s Hats' budgeted financial statements and learn how companies typically present their budget models. Last but not least, you will prepare a budget model on your own as part of the Course Challenge we created for you!

  The Income Statement Budget The Balance Sheet Budget The Cash Flow Budget Presenting the Budget Course Challenge