Financial Forecasting Vs. Budgeting
Budgeting is not the same thing as financial forecasting. It is a prediction of future outcomes, expenditures and even profits. It is based on the results of a future forecast sothata company or individual can then prepare a financial plan (that is; a budget) to fit into these projections.
Basically, financial forecasting is a prediction, while financial budgeting is a plan. Budgeting is planning how you’re going to spend resources based on the expected future outcomes you have forecasted. Budgeting relies on the information gotten from your financial forecast.
