BUDGET AND FORECAST

Objective

This training aims to provide companies entering the Hungarian market with the necessary skills to prepare and manage accurate budgets and forecasts. Employees will learn the strategic importance of budgeting and forecasting, how to use financial tools, and best practices tailored to the Hungarian market.

overview

1. Introduction to Budgeting and Forecasting

1.1 Overview of Budgeting and Forecasting in Hungary

Objective: To familiarize participants with the significance of budgeting and forecasting in financial management within the Hungarian regulatory and economic environment.

Content:

  • Definitions and key differences between budgets and forecasts

  • Legal requirements and guidelines for financial reporting in Hungary

  • Common budgeting methods used by Hungarian firms (top-down vs. bottom-up)

  • Market trends impacting budgeting in Hungary

Importance: This introductory session is critical for setting the context of financial management in Hungary, helping participants align their budgeting strategies with local standards and best practices.

1.2 Gathering Financial Data and Assumptions

Objective: Teach participants how to collect and validate financial data, focusing on macroeconomic factors in Hungary.

Content:

  • Key financial metrics and sources of data (inflation, exchange rates, labor costs)

  • Techniques for validating historical financial data

  • Identifying critical assumptions in uncertain economic conditions

Importance: Budgeting relies heavily on accurate data, and this session ensures participants can source and critically assess information that impacts their financial planning.

2. Budget Creation

2.1 Developing an Operating Budget

Objective: Equip participants with the skills to create an operating budget tailored to their Hungarian operations.

Content:

  • Detailed breakdown of revenue projections and cost estimation

  • Key line items in an operating budget: revenue, cost of goods sold (COGS), operating expenses

  • Industry benchmarks for companies operating in Hungary

Importance: A sound operating budget is the backbone of financial planning. This session focuses on granular financial details necessary for operational success.

2.2 Capital Budgeting

Objective: Guide participants through the process of planning for capital expenditures in Hungary.

Content:

  • Identifying capital projects (equipment, real estate, technology) and assessing their viability

  • Net Present Value (NPV) and Internal Rate of Return (IRR) calculations

  • Key considerations specific to the Hungarian investment environment, such as taxation and subsidies

Importance: Capital investments can have long-term impacts on financial performance, and this session ensures participants can assess and plan for these with the right tools and methodology.

3. Forecasting Techniques

3.1 Short-Term and Long-Term Forecasting

Objective: Train participants on how to forecast both short-term and long-term financial outcomes based on historical data and market conditions.

Content:

  • Time-series forecasting methods (moving averages, exponential smoothing)

  • Scenario planning for long-term forecasts: best-case, worst-case, and most likely scenarios

  • Adapting forecasts to Hungary’s economic volatility (inflation, regulatory changes)

Importance: Accurate forecasting is crucial for adapting to changes and setting realistic financial goals. This session prepares participants to think ahead and remain flexible in their strategies.

3.2 Integrating Forecasts into Financial Plans

Objective: Teach participants how to integrate their forecasts into actionable financial plans.

Content:

  • Aligning forecasts with strategic goals (expansion, cost management)

  • Using rolling forecasts to adjust for changes in the business environment

  • Communication of forecasts to key stakeholders (management, investors)

Importance: This session connects forecasts with decision-making processes, ensuring that financial plans remain agile and relevant.

4. Monitoring and Adjusting the Budget and Forecast

4.1 Budget vs. Actual Analysis

Objective: Train participants on how to monitor financial performance against the budget and forecast, and take corrective actions when needed.

Content:

  • Setting up variance analysis: actuals vs. budget

  • Understanding variances and root causes (sales volume, price fluctuations, operational inefficiencies)

  • Reporting and corrective measures: adjusting forecasts and budgets in real-time

Importance: Continuous monitoring is essential for the financial health of any organization, especially in a dynamic market like Hungary. This session helps ensure accountability and adaptability.

5. Practical Application and Case Study

5.1 Case Study on Budgeting and Forecasting for a Hungarian Subsidiary

Objective: Apply all the skills learned in a comprehensive, real-world case study.

Content:

  • Participants will work on a case study simulating the budgeting and forecasting process for a hypothetical company operating in Hungary

  • Teams will develop a budget and forecast, assess variances, and recommend adjustments

  • Each team will present their findings and receive feedback

Importance: The case study consolidates all learning points from the previous days, providing a practical framework for participants to test their skills.

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