Whats the difference between budgeting and forecasting?
Good morning: Here is a description of the difference that I found on handbag.com: • A budget is a statement of how the business, department or unit intends to spend money that will be available to it. Budgets therefore include contingency plans which show alternative sources of funds if there is a shortfall in anticipated income. • A forecast is a prediction of future income and expenditure. As you can see. the terms cannot really be used interchangeably.
