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The Budget and the Profit and Loss (P&L) are a strategic and tactical documents which reflect the business strategy and “Go to market plan” through the smallest numerical details.
The Budget and P&L provide an accurate forecast of the expected revenues, the cost required to generate them and the profit from the business. The Budget and P&L considers the ongoing uncertainty and risk of the physical year and factors in its implications thus enables a reasonable “error rate” for mistakes but still remain “on the course for success”.
The Budget and P&L are adjusted by comparing “budget figures” which are the forecasted numerical business results and outcomes with the “actual figures” which are the real numerical business results and outcomes. The gap between the “budget figures” and the “actual figures” is analyzed on a monthly and quarterly basis together with the company management and the strategy is adjusted accordingly or other tactical conclusions are taken in order to increase the probability to meet the planned forecast.
Target will work with Clients on creating the right The Budget and P&L plans for them and will provide ongoing advice in regards to the budget and its implications throughout the fiscal year.
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