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forcasting is the base for any budget
Budget is based on planned event and forecasting based on estimation
Budget is made for one year but forecasting is made for long period
In essence, a budget is a quantified expectation for what a business wants to achieve. Its characteristics are:
Conversely, a forecast is an estimate of what will actually be achieved. Its characteristics are:
A budget is a quantitative expression of a management plans for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.
Budgets are prepared normally to;
Forecasting
The use of historic data to determine the direction of future trends. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. This is typically based on demand for the goods and services it offers, compared to the cost of producing them. Investors utilize forecasting to determine if events affecting a company, such as sales expectations, will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for firms which have a long-term perspective of operations.
Budget is a short term quantified financial plan for the forthcoming financial period and prepared before the beginning of the accounting period and it is used for accountability purposes. on the other hand, forecasting is a general method for the future estimation of variables and for short and long term periods for financial and non financial purposes.
In simple words Forecasting is a tool that use to measure what is going to happen,How to done?
Or Budgeting is a tool used to calculate what is happened..what we have done?
Forcasting is just the prediction of Sales and Revenue with the help of historic figures. Whereas budgeting is the allocation of funds to sectors.
Forecasting IS JUST LIKE A VISION STATEMENT THAT WHAT IS OUR GOAL AND WHAT IS TO ACHIEVE IN THE FUTURE AND THE MOST IMPORTANT THING IS HOW TO ACHIEVE THAT GOAL THAT INVOLVES YOUR MANAGEMENT ALLOCATION.
BUDGETING ALSO INVOLVES THE FUTURE PLANS FOR THE NEAR FUTURE BASED ON THE PREVIOUS ESTIMATIONS AND EXPERIENCES DEPENDING ON THE ALLOCATION OF FINANCIALS DEPENDING ON THE IMPORTANCE OF ACTIVITIES.
Forecasting is the process of making predictions of events waiting to occur
Budget: is expected Balance sheet for the company activities in the future for estimated period be based on forecasting
@manaf almas agree
Intended to predict the future is to look at the list and to predict the financial Mihaeh what should be a promising budgets, which in turn ends Baeidadad Financial Statements
The budget is the financial statements relating to a financial period to come, and in other words, is the financial plan for the period following the estimated Usually the Year