Budgeting and forecasting are an important component of financial planning for the decision-making process and any business success. While budgeting your plan of all your expenses allows you to understand whether you will have enough finance to continue with your operations smoothly for a particular period. A budget helps in preparing a business’s financial plan to better manage monthly, quarterly and annual cash inflows and outflows.
Forecasting, on the other hand, is all about determining the financial status of the business. Forecasting is used to make future financial projections with the use of historical data. It helps to identify trends that are used compare the company’s financial position with its own historical data, competitors as well as to other companies in the same industry.
You must understand how budgeting is different from forecasting to be able to perform both the activities with finesse. Budgeting is preparing a financial planner while forecasting is to use this exact planner and predict whether the company will meet or exceed the expectations from the budget.
Irrespective of the size of operation of the business, one must note that they will always end up having to prepare a budget and forecast plan for a year or so. Let us understand why your business requires a budgeting and forecasting process -
Quarterly, half-yearly or annually for the company and its departments, annual costs of the different projects are also included in the operating budget
Budget for the entire life of a project, they are used to control and report Individual costs for a project
Capital Budget to help identify, assess, and plan for a company’s capital needs, to meet their goals and objectives.
Cash Flow Forecasting that helps in identifying budget variances and thus should be prepared along with the budget.
Outsource your business’ budgeting and forecasting services to us today and be assured you will have an accurate picture of your business in terms of performance as well as a yardstick (in line with industry standards) to measure your performance against in coming years.
We at Whiz Consulting are here to assist you with your budgeting and forecasting services in Australia. Outsource your budgeting and forecasting process to us will benefit you in the following manner -