- What is advantage of Forecasting?
- How does traditional Budgeting
differ from Forecasting?
- How does Forecasting differ from
Planning?
- How does Budgeting differ from
Forecasting?
- 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
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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
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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.
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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
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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.
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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
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