Archive for May, 2010

Accounting 101: Budgets vs Forecasts

May 20, 2010

Budgets are short term – one month to less than one year. They are concerned with the “details”.

Forecasts are long term – one year plus. They are concerned with long range strategy. They determine if strategic action meets long term goals. They are less concerned with the “details”

You need to utilize both budgets and forecasts when charting your future. You need a vision [forecast] of where you are want to go and a plan [budget] on how to get there