Difference between Budget and forecast?

Question

Accepted Answer

Budget is a plan for future income and expenses, while forecast is a prediction of future financial outcomes.

Budget is a financial plan for a specific period, usually a year, that outlines expected income and expenses.
Forecast is a prediction of future financial outcomes based on past performance and current trends.
Budget is more rigid and inflexible, while forecast is more flexible and adaptable.
Budget is used to set financial goals and allocate resources, while forecast is used to adjust plans and make informed decisions.
For example, a company may create a budget at the beginning of the year to plan for expected revenue and expenses, but may also create a forecast halfway through the year to adjust for unexpected changes in the market or industry.

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