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The Difference Between Budgeting and Forecasting | Anamind

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The difference between budgeting and forecasting. In a large organization, who calculates each and how? Why most times the budget and forecast never match? Find out more

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The Difference Between Budgeting and Forecasting | Anamind

  1. 1. FAQs: The difference between budgeting and forecasting Part - 4 Powerful Planning! Simplified
  2. 2. What is the difference between budgeting and forecasting? In a large organization, who calculates each and how? I look at the monthly reports sent out by the company and the budget and forecast never match. Why? Very good question and one that needs to be clarified for understanding within the organizations as well. Budgeting is usually an annual exercise done at the start of the year and in some cases revised 6 months down the line.
  3. 3. It is basically wish of the company translated into numbers on where they want to be next year in terms of revenues and profits and how they shall achieve it. Once done it is a constant number that is tracked against the actuals during the year. Forecasting is a recurring exercise done on a monthly or a weekly basis to understand the current direction the sales is moving and its effect on profits and cash flows.
  4. 4. Forecasts are different from budget because they do not reflect the wish of the company but the market reality. Forecasting helps companies identify the gaps with the budget before it become a reality so that they can do something to bridge the same. The bridging of it is the tactical planning where teams like marketing and sales get into action.
  5. 5. To understand more about the planning and forecasting you may join our course on same
  6. 6. “A goal without a plan is just a wish.” ― Antoine de Saint-Exupéry
  7. 7. For better understanding on planning and forecasting, you may enroll to our full training Check the next slide >>
  8. 8. Thank You To learn more about ‘Business Planning and Forecasting’ enroll to full training at: http://bit.ly/grab-your-udemy-coupon

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