Forecasting FAQ
Forecasting Frequently Asked Questions
Home  |   About Us  |   Services  |   Consultants  |   Search  |   Sitemap  |   Contact Us

Forecasting FAQ SiteMap
  1. What is advantage of Forecasting?
  2. How does traditional Budgeting differ from Forecasting?
  3. How does Forecasting differ from Planning?
  4. How does Budgeting differ from Forecasting?
  5. Does traditional Forecasting support Improvement?

1. What is advantage of Forecasting

  • Can change a forecast
  • Can't change results of after-the-fact monthly statement
  • Easier and faster than budgeting
  • More timely than budgeting
  • Have to understand business and drivers to forecast accurately

Back to Top

2. How does traditional budgeting differ from Forecasting?

Traditional budgeting focuses on:

  • expenses
  • departments, cost centers, divisions
  • variance analysis of actual versus budget

Forecasting focuses on:

  • more update to date information
  • can forecast on any meaningful time period, not restricted to months, quarters, and years
  • improving accuracy of forecast by understanding what drives business
  • changing forecast if you don't like what was forecasted

Back to Top

3. How does Forecasting differ from Planning?

Planning describes in words what an organization intends to accomplish in some time frame..

Forecasting translates a plan into financial terms for any meaningful time period.

Back to Top

4. How does Budgeting differ from Forecasting?

Forecasting is usually a once per year endeavor.

Forecasting updates on some regular basis what the organization thinks the results will be based on the latest information.

  • Quarterly forecasts until year end or for next 4 quarters
  • Semi-annual forecasts
  • rolling 12 month forecasts
  • monthly forecasts for next quarter and quarterly forecasts till end of year

Back to Top

5. Does Forecasting support Improvement?

  • Because a forecast can be changed and improved because it is before the fact
  • You can pay people for achieving the maximum rather than just beating a sand bagged budget.

Back to Top

Call John Antos at 972-980-7407 to find out how to Improve your Forecasting to help you reach your goals and give your peace of mind

Forecasting FAQ
Forecasting Training
Forecasting Software
Forecasting Advantages
Forecasting Consulting
Forecasting Consultants
Forecasting& Cost Accounting
Forecasting Articles

Find Out How We Can Help

Have Forecasting specialist contact me

Name
Title
Company
Address
E-mail
Phone
Problem
or
Challenge

Phone: 972.980.7407 email: Contact us
Value Creation Group, Inc.
7820 Scotia Dr. #2000
Dallas, TX 75248

 



copyright © 1984-2013 Value Creation Group ®, Inc. For additional information, click Contact Us