Budgeting and financial forecasting are tools that companies use to establish a plan regarding where management ideally wants to take the company (budgeting) and whether it is actually heading in the right direction (financial forecasting). Although budgeting and financial forecasting are often used together, distinct differences exist between the two concepts. Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the number of revenues that will be achieved in a future period.
Financial Forecasting and Budgeting in UAE selects the most economical sources of finance and estimates the total capital requirements. This will help to determine the future financial activities of a company. The financial plans are prepared to manage the expenditures and fulfil financial goal of the company.
A budget is an outline of expectations for what a company wants to achieve for a particular period, usually one year. Characteristics of budgeting include:
Financial forecasting estimates a company's future financial outcomes by examining historical data. Financial forecasting allows management teams to anticipate results based on previous financial data. Characteristics of financial forecasting include:
Financial forecasting can help a management team make adjustments to production and inventory levels. Additionally, a long-term forecast might help a company's management team develop its business plan.
If you think your business can benefit from financial forecasting you are at the right place. Out professional experts can help in building a solid basis for your business' budgeting decisions. We are one of the best for Forecasting and Budgeting in UAE. We help our clients create a unique financial plan and guide them. Regular analysis for your business will also be conducted by our experts. To avail the best Forecasting and Budgeting services in UAE, contact HALSCA.