Budgeting & Management Accounting
Tuesday, October 20, 2009, Kigali, Rwanda
Goldman Sachs Entrepreneurship Certificate Program
Session 4: Budgeting and Management Accounting
This session covers basics concepts regarding the accounting system, financial forecasting, planning and budgeting, and financing mix. It will introduce to the participants about the financial records and how to keep them; it will show them also the importance of keeping the accounting information. This session will show to entrepreneurs about the financing mix regarding their capital structure and the accounting information system. We will use interactive lectures and in-class practices and explore typical examples to help participants fully understand accounting practices. The templates of accounts will be also provided. The participants will be shown how accounting, bookkeeping, planning and budgeting contribute to the success of the business. After completing the session, participants will have a strong understanding the accounting system and be able to apply what they have learned in their own business.
The key topics to be covered in this session are as follows:
Topic 1: Introduction to accounting will introduce the basic concepts of bookkeeping and accounting system. This session will familiarize the participants with the necessary concepts for developing robust financial records, including the importance and benefits of keeping financial records for a business. The session will illustrate who uses the financial information and for what purpose.
Topic 2: The Accounting session will introduce the Accounting System using detailed accounting records. Participants will learn how to maintain the records by using a developed cash book, the bank system, a journal entries, and the ledger and trial balance. The session will use practical examples to make the topic easily transferable to the participants’ business plans.
Topic 3: Financial forecasting and Planning & Budgeting will introduce the concept of developing a business’s purpose or mission. From there, participants will learn demand forecasting and financial forecasting. They will explore the types of plans, steps in planning, nature and scope of planning and budgeting, the meaning of budgeting and budgets, classification of budgets, and preparation of budgets. Practical examples, as well as case studies and group work, will be used to give participants the tools for developing a successful financial plan for their business.
Topic 4: Financing Mix will cover how businesses are financed, measuring a firm financing mix, and capital structure decisions.
