Budgeting vs forecasting
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 August 2012
Please let me know the difference between budgeting & forecasting.
30 August 2012
A forecast looks the same as a plan or budget and the mechanics of putting a forecast together are the same as for a plan or budget. However a forecast is really quite different from a budget, principally because of the way it is used, and the data it contains. If you use them wisely forecasts will be the major tool in ensuring you never run out of cash.
Unlike a budget, a forecast is not intended to be a goal - it is more passive. A forecast is really just a vehicle to allow you to peer into the future and make predictions about what is likely to happen. The sales you put into a forecast will normally be those you believe you are most likely to make over the coming months.
in view of above say that Both are relating to the estimation of future but , if we deeply study the both concept we can get following differences between them. :-
1st Difference
**************
Budget is based on planned events . We actually makes stand in advance and then control our position
forecasting is just estimation of uncertain future for making planning .
2nd Difference
**************
Budget is made for one financial period
Forecasting is for long time.
3rd Difference
**************
It is necessary for budget or corporate to make budget
forecasting is suitable in that field where we do not make budget.
eminent expert also comments in this topic....
Unlike a budget, a forecast is not intended to be a goal - it is more passive. A forecast is really just a vehicle to allow you to peer into the future and make predictions about what is likely to happen. The sales you put into a forecast will normally be those you believe you are most likely to make over the coming months.
in view of above say that Both are relating to the estimation of future but , if we deeply study the both concept we can get following differences between them. :-
1st Difference
**************
Budget is based on planned events . We actually makes stand in advance and then control our position
forecasting is just estimation of uncertain future for making planning .
2nd Difference
**************
Budget is made for one financial period
Forecasting is for long time.
3rd Difference
**************
It is necessary for budget or corporate to make budget
forecasting is suitable in that field where we do not make budget.
eminent expert also comments in this topic....
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