Budget vs forecast??

What is the difference between budget and forecast?

2 個解答

  • 1 十年前

    Budget is a financial plan normally for one year and is prepared by individual department for approval by their head. Once approved, the department has to spend money within budget. If they want more money, they have to seek prior approval. Otheriwise, they will be in trouble. They will have to explain why they didn't spend according to plan.

    Forecast is a financial plan for longer term, say, 5 years, 10 years. It is usually prepared by Planning Dept or Finance Dept. Inputs contained therein are from big boss and responsible managers. The forecast is actually a business plan for years ahead that is compiled based on their best assumptions. It can be very unrealistic because nobody can predict what will actually happen in the next ten years. So the forecast is revised from time to time when more real data are available.

    Hope my answer is helpful to you.

    2007-06-03 22:39:42 補充:

    Budget is generally shown month by month for one fiscal year. A department is required to compare budget against actual every month and provides explanations as to why they over/under spent.Forecast normally goes year by year for longer term and revision is made when assumptions are changed.

  • 1 十年前

    Another meanings for your ref.

    Budget is a yearly planning (can see monthly budgets) which is done before the coming financial year but it is not adjustable before approval of management person.