Forecasting vs Budgeting: How Financial Models Differ in Business Planning

Forecasting is a dynamic process, emphasizing adaptability to changing conditions and uncertainties that affect business outcomes. Unlike budgeting, which sets fixed financial targets, forecasting prioritizes the flexibility of assumptions in predicting future events.

Budgeting serves as a benchmark, focusing heavily on a well-defined fiscal strategy, allowing for limited adjustments. It emphasizes short-term targets and maintaining a course aligned with strategic objectives.

Read at Business Matters