What is the difference between budget and forecast
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Budget and Forecast
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Both are same. Budgeting is a forecasting tool.
Both are same. Budgets are prepared by forecasting future receipts and payments
BUDGET IS A PREPATORY STATEMENT OBVIOUSLY WITH SOME ASSUMPTIONS FOR FORECASTING FUTURE TRANSACTIONS.
The key difference between a budget and a forecast is that a budget lays out the plan for what a business wants to achieve, while a forecast states its actual expectations for results, usually in a much more summarized format. ..
IN ORDER TO MAKE A FORECAST REALISTIC YOU NEED TO STATE THE ASSUMPTIONS WHICH ARE EVIDENTLY NECESSARY.
Both budget and forecast are based on key assumptions. This is common and not difference .
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