Study Guide

Objective

- Understand the role and importance of budgeting in business management
- Understand what budgeting is and what it involves
- You know the prerequisites for successful budgeting
- You can set business objectives and key performance indicators
- You can draw up simple sub-budgets and main budgets

Content

Business planning is key to a company's success. For even a small business, budgeting is an easy way to plan operations and to translate future goals into measurable action. However, it is not just a matter of putting numbers on an excel sheet, but a holistic process that involves not only planning and implementation, but also active monitoring and reacting to deviations.

This course will give you an idea of what budgeting is, what the steps are and what needs to be taken into account in the process. You will be able to apply the theory in practice and prepare a simple profit and loss, financial and balance sheet budget for a company, in addition to a partial budget.

The course consists of independent study of the materials and testing of your own knowledge through various tests and exercises. Finally, an assessed learning assignment will be completed and returned.

Location and time

The course is carried out independently in Moodle within the respective timetable.

Materials

All material available on Moodle. In addition, the following books can be used as supporting literature:

Neilimo K. & Uusi-Rauva E.: Johdon laskentatoimi. Edita Publishing
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Jormakka R., Koivusalo K., Lappalainen J., & Niskanen M.: Laskentatoimi. Edita Publishing

Teaching methods

The aim of the course is for the student to understand the importance of budgeting in managing the activities of an organisation as part of financial planning and the production of information in the form of reports and key figures.
Students will be able to process financial information of an organisation for different purposes.

Course content:
Budgeting as part of financial planning:
- Operational planning and finance
- Budget systems: sub-budgets and main budgets
- types of budget (fixed, revised, rolling, sliding)
- challenges and pitfalls of budgeting

The coursework consists of lecture notes, exercises, competency-based components and an assessed learning task.

Student workload

This course is 2 credits = 54 hours of student work. The course is self-paced and independent.

Further information

All instructions for completing the course can be found on Moodle. If you have any problems, please contact the teacher responsible for the course.

Evaluation scale

H-5

Assessment methods and criteria

The course is assessed on the basis of a returnable learning task. In addition, all assignments must be returned to Moodle and the competency tests must be completed in order to pass the course.

Assessment criteria, fail (0)

A learning task score of less than 51 points or some of the exercises and knowledge tests are not returned within the course time limit.

Assessment criteria, satisfactory (1-2)

A learning task score of 51-60 (1) / 61-70 (2) and all exercises and competency tests are duly returned within the course time limit.

Assessment criteria, good (3-4)

A learning task score of 71-80 (3) / 81-90 (4) and all exercises and competency tests are duly returned within the course time limit.

Assessment criteria, excellent (5)

A learning task score of 91-100 and all exercises and competency tests have been duly returned within the course time limit.