What is the difference between forecasting and budgeting

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Accepted Answer

Forecasting involves predicting future financial outcomes based on historical data and trends, while budgeting involves setting financial goals and allocating resources to achieve those goals.

Forecasting uses historical data and statistical models to predict future financial outcomes.
Budgeting involves setting financial goals and creating a plan to allocate resources to achieve those goals.
Forecasting is more focused on predicting future financial performance, while budgeting is about planning and controlling financial activities.
Forecasting helps in making informed decisions and identifying potential risks and opportunities.
Budgeting helps in monitoring and controlling expenses, ensuring financial discipline, and evaluating performance against targets.

What is the difference between forecasting and budgeting

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