Difference between budgeting and forcasting

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Budgeting involves setting financial goals and allocating resources, while forecasting involves predicting future financial outcomes based on current data.

Budgeting is the process of creating a detailed plan for the future that outlines expected revenues and expenses.
Forecasting involves using historical data and trends to predict future financial outcomes.
Budgeting is more focused on setting financial targets and allocating resources accordingly, while forecasting is about predicting future financial performance.
Budgeting is usually done on an annual basis, while forecasting can be done on a regular basis to adjust plans based on new information.
Budgeting helps in controlling expenses and ensuring financial stability, while forecasting helps in making informed decisions and planning for potential risks.

Difference between budgeting and forcasting

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