The budgetting process involves preparing a detailed budget of how much income and expenses you will have in a given period of time, often a 12 month period and the expected bottom line or result you hope/expect to acheive. A forecast is an estimate or best guess as to what the result will be, compared to the budget, for the same time period.
A budget is (usually) an exercise to create the initial, static, expected financial results for the time period, usually the 12 month fiscal year.
A financial forcast is performed post budget and takes into account the actal results, changes that have taken place in the static budget and any new items not budgeted. The forecast can be for the balance of the fiscal year, or go out beyond the budget perod (i.e. rolling 12 month forecast)
March 2nd, 2010
The budgetting process involves preparing a detailed budget of how much income and expenses you will have in a given period of time, often a 12 month period and the expected bottom line or result you hope/expect to acheive. A forecast is an estimate or best guess as to what the result will be, compared to the budget, for the same time period.
A budget is (usually) an exercise to create the initial, static, expected financial results for the time period, usually the 12 month fiscal year.
A financial forcast is performed post budget and takes into account the actal results, changes that have taken place in the static budget and any new items not budgeted. The forecast can be for the balance of the fiscal year, or go out beyond the budget perod (i.e. rolling 12 month forecast)