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What is the difference between budgeting and forecasting?

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Question added by Pranam Karachur , Pricing Manager , HEWLETT PACKARD
Date Posted: 2015/11/26
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by Deleted user

Budgeting is the process of setting financial goals, forecasting future financial resources and needs.

Rachel Matias
by Rachel Matias , Purchase to Pay Analyst , Rustan Supercenters Inc

Budgeting usually refers to the following year expected sales and expenses whereas forecasting involves a 5-year plan. Budgeting is more detailed and is more realistic than that of forecasting which is usually based on historical data and future trends.

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