Budgeting and Forecasting - The processes are critical for helping finance management understand where they are today, plan for where they want to be tomorrow and understand what steps are needed to be taken to ensure the organization is able to stay on course.
It is a three steps process which includes:
Planning - outlines the company's financial direction and expectations for the next three to five years.
Budgeting - documents how the overall plan will be executed month to month, specifying expenditures.
Forecasting - uses accumulated historical data to predict financial outcomes for future months or years.
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