Budgeting and forecasting are essential to any business planning for the financial year ahead. Budgeting involves allocating a set amount of funds to specific departments for specific tasks: marketing and lead generation, for example. But it also involves the more mundane things such as office supplies and overheads.
Forecasting on the other hand involves the prediction of what the company or business believes it will spend overall as well as what it’s revenue and profits are expected to be. Forecasting is important because results need to offset budget expenditure in order for a company or business to hit its targets.