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Akash Koli

Experienced Financia... • 7m

Budgeting vs. Forecasting: Key Differences & Why Both Matter Budgeting involves setting a fixed financial plan for a specific period, guiding resource allocation and setting targets. It’s static and used to measure performance. Forecasting predicts future financial outcomes based on current data and trends. It’s dynamic and updated regularly to reflect real-time changes, helping businesses adapt and make informed decisions. Differences: 1. Time Frame: Fixed (budget) vs. ongoing (forecast) 2. Flexibility: Static (budget) vs. adaptable (forecast) 3. Purpose: Planning (budget) vs. predicting (forecast) Why Both? Budgeting ensures financial discipline, while forecasting offers adaptability and real-time insights. Need help with budgeting and forecasting? Visit our website vittArena. Do you prioritize budgeting or forecasting? Share in the comments! #Budgeting #Forecasting #FP&A

www.vittarena.in

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Do Entrepreneurs and SMBs in India face challenges with respect to cash flow management and financial planning and forecasting?

Yea

Absolutely

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