Predictive Accounting: Driver-Based Budgeting & Rolling Financial Forecasts

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The annual budgeting process is often criticized as an accounting exercise that is obsolete soon after it is published, prone to gamesmanship, cumbersome, not volume sensitive, and disconnected from the organization's strategy and risk management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

Notice

This course is offered by a 3rd party vendor and will not be accessible in the My CPE Tracker section of the ISCPA website. Course access information will be emailed directly to you by Accounting Continuing Professional Education Network (ACPEN).