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According to a survey of finance executives
budgets become obsolete for decision making very quickly:
- 27% of budgets are obsolete before the
year starts
- 68% of budgets are obsolete by June
for calendar year organizations
Wikipedia defines
Forecasting is the process of making statements about events whose
actual outcomes (typically) have not yet been observed.
Forecasting can be for time periods longer than or shorter than
one year
- Semi-annual
- Quarterly
- Monthly
- 5, 10, 20 years
Forecasting is increasing in importance and budgeting is
decreasing in importance because of
- Sand bagging by executives to ensure their bonus
- Obsolesce of budget even before year starts
- Large time commitment on budgeting with a low return
Call John Antos at 972.980.7407 to find out how Forecasting can
help you achieve your goals.
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