LEARN

BUDGETING

SWIPE
 THE PROCESS

Set expectations with management

Sales

Operational Plan

Resources

Standard costs Overhead

Income Balance Cash Flow

Statement Sheet Statement

Nicolas Boucher
 1. SET
EXPECTATIONS
Understand expectations
from management about
● Growth
● Implementation of
strategy
● Profitability
● Lessons learned from the
past

Nicolas Boucher
 2. PLAN SALES
● Choose the most
appropriate method
● Plan with sufficient details
to be able to run analysis
● Pay attention to factors
impacting changes
● Ensure accuracy of phasing
● Prepare what if analysis
with impact on resources
and profitability

Nicolas Boucher
 3. OPERATIONAL
PLAN
● Plan production and
delivery
● Plan workload

Nicolas Boucher
4. PLAN RESOURCES
● Plan direct headcounts &
capacity
● Plan material needs
● Plan investments

Nicolas Boucher
5. STANDARD COSTS

Compute:
● Direct labor: hours/unit
and hourly rate
● Material: quantity & price
● Manufacturing overhead
allocation

Nicolas Boucher
 6. OVERHEAD
● Department budget
● Allocations of overhead
costs

Nicolas Boucher
 7. FINANCIAL
STATEMENTS
● Income Statement
● Balance Sheet
● Cash
● Communicate results and
cascade down key figures
and action plan

Nicolas Boucher
BONUS
ROLE OF FINANCE

● Coordination
● Consistency
● Documentation
● Communication of
targets and results

Nicolas Boucher
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