Budgets and forecasts are two of the most important financial tools at your disposal. We break down the difference between a budget and a forecast, and look at how to use them in your business.
As a small business owner, chances are you’ve come across the terms ‘budget’ and ‘forecast’ on a regular basis. Budgets and forecasts are key management tools that are used to plan and track your business finances.
However, if you’re scratching your head thinking, “what is the meaning of a budget and forecast?”, don’t worry. You’re definitely not alone. With so many financial terms to wrap your head around, it can feel confusing to say the least — especially when you’re just starting out.
To help you out, we’ve put together this guide which explains what a budget and forecast is, what they do, and how to use them in your business.