What is the difference between a budget and a forecast?

A budget and a forecast share similarities but they are different. They are both aimed at successful financial management. However, one represents the present while the other represents the future. A budget is where the company wants to go. It is often prepared for a certain period and not changed. A forecast might change monthly. It is the expected goal because of what is currently happening. Overall, developing a detailed budget and forecast are important aspects of planning.

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