Predictive Accounting: Driver-Based Budgeting & Rolling Financial Forecasts
Wednesday, May 14, 2025
Webcast or Webinar, Online
1:00 PM - 2:48 PM (opens at 12:30PM) EST
2Credits
Accounting and Auditing
Registration is Open
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$79.00 Regular Price
Non-Members
$109.00 Regular Price
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Course Type: Webcast
Course Code: 25/AC680927
Level: Intermediate
Vendor: ACPEN
Field of Study: Accounting
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The annual budgeting process is often criticized as an accounting exercise that is obsolete soon after it is published, prone to gamesmanship, cumbersome, not volume sensitive, and disconnected from the organization's strategy and risk management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.
Objectives:
- Understand how to create driver-based budgets and rolling financial forecasts
Major Topics:
- 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
Major Topics:
- 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