What is a budget forecast?

If a budget summarizes a company's goals and a forecast models what those goals should achieve, then a budget forecast predicts the outcome of the budget. In other words, the budget forecast answers this question: "if followed exactly, what end state does this budget create?" A budget forecast is a projection of the budget.

What is a budget projection?

These financial terms are types of predictions about a company's future financial conditions and goals. Budget projection is a valuable business tool that helps with informed decision making at any level of a business. In this article, we discuss what a budget projection is, why it's important and how to prepare a budget projection.

What is budget season?

For every month of budget, you’ll compare actual performance (“actuals”) against the budget. This determines how closely the business is following the plan, and if it lines up with expected outcomes. Budgets require a lot of detail, and they take time to complete. “Budget season” planning starts at least three months before the budget takes effect.

What is budgeting and why is it important?

Budgeting is the process of planning, including income (revenue) and spending (expenses) for your business over a set period of time. Budgets most commonly look at the next 12 months of the business and track finances over a calendar or fiscal year. It helps to think of a budget as a financial roadmap for your business.