Call +968 24291206

Budgeting, Variance Analysis & Modelling

Program Objective:

No organisation plans to fail but many fail to plan. In order not to be faulted for failing to plan, several companies prepare an annual budget religiously. They adopt incremental budgeting approach due to its simplicity. But this approach, more often than not fails to impart energy to the process and instil a sense of ownership and commitment to the outcomes envisaged. This program seeks to demonstrate as to how a) the required alignment and inspiration can be achieved by putting in place certain enabling processes and linking them to both of operational and capital budgeting exercises and b) the actual performance can be periodically evaluated by using very effective ‘variance analysis’ tools.

During the course, participants will create their own Excel budgets & reporting analysis to take away with them.

At the end of this 3-Day program, the participants will:

  • Develop the confidence in and be able to do Budgeting and Variance Analysis- the methodology for preparing the static budget and flexing the static budget to analyse the deviations and fixing responsibility.
  • Understand the roles of budgeting in line with corporate objectives.
  • Understand the pre-requisite in order to prepare a complete budget.
  • Prepare various core budgets and understand the strengths and weaknesses of budget.
  • Identify and prepare variance analysis report effectively.
Who Should Attend?
  • All middle level and senior finance and non-finance managers.
  • Owners and identified successors of family businesses.
  • Internal auditors.
  • Must possess intermediate excel skills.
  • Software version: MS Excel 2007.
Program Outline
Module 1: Budgeting and Forecasting Concepts

Budgets and Strategic Planning

  • Linking Budgets to business objectives.
  • Budgeting to achieve organizational objectives.
  • How to turn measurement into management.

Using Budgets as Performance Management

  • The impact of budgets on organizational performance.
  • Successfully integrating forecasting and budgeting as essential tools for measuring performance.
  • Translating the organization’s values into measures and targets.

Management Reporting

  • Using reporting to promote accountability.
  • Variance analysis.
  • Budgeting and forecasting as a planning and management tool.
  • Assessment and selection of appropriate systems.

Budgeting Techniques

  • Historical-based versus Zero-based budgeting.
  • Top down vs bottom up.
  • Activity Based Budgeting.
  • Differences between a static, flexible and rolling budget.
  • Budgeting for capital expenditure vs. operational expenditure.
Module 2: Create budgets in excel with Interactive Control Panel, Scenarios and Dashboards
  • Learn how to create a budget, rolling forecast and budget scenarios in Excel.
  • Create control panel for input data.
  • Link key indicators onto the control panel.
  • Create scroll bars and linking to the income and cost drivers that facilitates the quick decision on different business scenarios.


  • Stress-test, break-even and sensitivity analysis.
  • Create and display budget scenarios.
  • Manage what-if analysis.
  • Shortcuts for data manipulation in Excel.
Module 3: Building Variance Analysis Model: Budget vs Actual
  • Learn how to leverage on Excel to build variance analysis model.
  • Variance analysis and variance report to track deviations and to fix responsibility.
  • Excel challenges in variance analysis.
    • Extracting data at a click.
    • Interpreting the variances effectively.
    • Structuring the analysis.
    • Create interactive charts showing the trend over a period of time.
  • Create automated variance reports that search through thousands of variances and list the ones that probably are significant and filter variances on analytical basis.
  • Use excel’s conditional formatting feature to variances to highlight key items.
  • Create floating markets, Excel Charts and Dashboards with Color Alerts for Actual and Budget (Target) Values.