Budgeting and forecasting help you formulate strategies, plan for the future and align your goals across the entire organization. Both processes are crucial components of every company’s growth journey, especially during periods of change.
Budgeting is planning a company’s revenue and expenses for a specific period.
Forecasting is using historical trends to predict future business results.
There are key steps you can follow to improve your budgeting and forecasting processes.
So what is budgeting, what is forecasting and why are they both so critical? To appreciate what they are and how they contribute to organizational success, let’s unpack budgeting and forecasting and drill into challenges, best practices and major differences between them.
