Annual Operating Plan Process - The Annual Budget

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The Annual Operating Plan is one of the most important things a business does each year. It is a process that is often led by the finance team but requires full synchronization with the whole organization. This video goes through the annual operating plan process.

0:00 Intro to the Annual Operating Plan
0:48 What is the Annual Operating Plan and why do one
3:03 Annual Operating Plan Layout
5:00 Sales & Production Budgets
8:44 Tops down vs. Bottoms up Forecast
10:30 Production, COGS, Capex and R&D
12:53 SG&A Budget
13:54 Income Statement, Balance Sheet, Cash Flows
16:31 The Finance team's role
18:41 Advice and things to think about
23:00 Summary

[Jwleleven]

I would love to know why "It's so delicious that I cook it almost everyday! Incredible fast and easy!" is in your Analysis and Modeling playlist

[BiggieTall_]

This is an excellent video. Thank you for sharing your knowledge & experience.

[ZHOUCHENGLIN]

Great video and well demonstrated. Thank you.

[Justanotherunboxing]

Great video. Someone like myself who is new to the budget creation side this video is very helpful.

[redz_]

Great presentation - would it be possible to receive the slide pack for reference?

[makeittrades]

Excellent video guys, really liked the content and presentation. It's just confusing that labor keeps showing up across different areas. For example, it the first slides it was in the production budget then it was in the COGS, other than that I liked the material.

[jackieo]

I found this extremely helpful - however you use/write out terms that if someone doesn't understand an operating plan they won't know what you mean by using various terms - (FP&A, SGA, etc.) otherwise extremely helpful. I'm new to this but paused a few time to google various terms. Thanks again for posting

[blackplussesami]

Thanks a lot about your video. In which book can I find the term 'AOP'? Is it a official term?

[nareshmanneela]

I’ve some doubts in terms of preparation budget

[guillaumedecouflet]

Hey guys, so I have a question for you. Who in the finance team would take the lead on creating this plan? By that I mean, what would generally be their title? I'm looking to switch career and to be honest, as nerdy as it might sound, this is what I was really most excited about when I was running my business and my client's businesses. The jigsaw puzzle aspect is really cool IMHO. So I'm looking to identify what would it take to do this as a job. Thanks in advance!

[Potencyfunction]

Hmm..in the 14:18 u expose the "Finacials modul " as a Annual Report ( Income Statement and Balance sheet ) which is wrong because the financial includes BEP and NPV ( net present value ) . I believe you have different modules there .