Budgeting & Forecasting

As the new financial year looms upon us, it is important for businesses to focus their attention on budgets and forecasts. So what is the difference between the two and why are they important?

A budget is typically an outline of your expectations for the coming financial period. It is where you want your business to be at the end of the period and estimates revenue, expenses and your expected cashflows. Budgets tend to be a micro analysis of the business.

Forecasting is an estimate of what will actually be accomplished and is regularly updated. It is a prediction of how the business will go based on the budget, actual financial results and current market conditions. It tends to focus more on strategic thinking, rather the micro analysis of the budget.

Budgets and forecasting are essential to any business in order to make well informed decisions. It sets targets for the business as well holding businesses accountable throughout the year. If you would like more information or would like assistance with setting your budget and forecast, please contact us.

Related Post

2024 MS Moonlight Walk

On Saturday 19 October we will face the future together, shining a light on neuro and raising crucial funds for Queenslanders living with a neuro condition.

Read More »

October 2024 Strategic Update

Our October newsletter provides some detail regarding the employee superannuation payment cycle changes coming in 18 months. Starting this month there will be a series of succession planning tips for any of you considering a review of your estate planning.

Read More »

September 2024 Strategic Update

Our newsletter this month is a mixed bag of information. From how to spot a scam; to the ATO’s focus on ‘lifestyle’ assets and capital gains tax, there’s something for everyone included.

Read More »

August 2024 Strategic Update

Please enjoy our August newsletter. Amongst the various topics covered this month is a snapshot of some big changes coming for tax agents that will require more compliance to adhere to. We may have to ask more questions of you from time to time to ensure we are meeting our obligations and we appreciate your understanding whilst we navigate some of the new requirements.

Read More »