BUDGETING AND FORECASTING
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BUDGETING AND FORECASTING
Are you planning to grow your business? Do you need to figure out where your business stands at this point? Do you want to know how much money is required to manage your business in the coming months? Well, all these questions can be answered through budgeting and forecasting. We at the Accounting Doc understand how critical it is to have access to accurate data for your business.
Our team of experienced professionals will design and generate ideal budgets. We also forecast reports tailor-made for your business. The difference between having an accurate budget plan and a generic one is night and day.
Do you know that each business has different budgeting needs? Don’t worry because we have you covered. Let us try to understand why budgeting and forecasting are so crucial for any business.
Budgeting
Budgeting is a plan that guides you on how to spend your money. It is a spending plan that helps you understand how much money is required to do the things that are required for your business.
It helps you make decisions on your working capital or repayment of liabilities. An ideal budget is designed with financial information already in your books to give you an insight into the future keeping in mind the trends of the past. It is only through budgeting that you will make sure that you have enough money to keep your business running.
A budget report is one of the most commonly used tools for maintaining control over the finances of a business. It can also help you control your expenses and decide which areas need to be addressed. As it is a road map for your business objective, the budget report must be drafted specifically for your business needs.
Forecasting
Although many people think that budgets and forecasts are one and the same thing, they are different in many aspects. Although the end result is always in the best interest of the business, the procedures followed to achieve the required reports are very different.
Unlike budget there are no targets in forecasting and they are updated more frequently. Accurate forecasting reports require professionals who have spent countless hours understanding how businesses work.
They need to have an intricate understanding of workflows and economics, the team at the Accounting Doc are experts in both. Time and time again our experts have helped businesses exactly as yours get a peek into the future based on the past trends, the present market conditions and future projections. Taking the best decisions requires the best reports and the Accounting Doc you have covered.
The biggest difference in forecasting is that it is actually a projection. Where budgets rely solely on financial information of the past, forecasts include trends and events that are likely to occur in the future. It is more of an estimation which keeps in mind the past and present but focuses more on the future.