Introduction to Budgeting & Forecasting

Planning for Future Business Performance

Budgeting and forecasting are essential planning tools that help organizations allocate resources, set performance targets, and anticipate future financial results. While budgets establish formal financial plans, forecasts estimate likely future outcomes based on current information and changing business conditions.

For CPA BAR candidates, understanding budgeting and forecasting is critical because these processes support strategic planning, performance evaluation, capital allocation, and managerial decision-making.

• Plan future operations.
• Allocate organizational resources.
• Measure performance against expectations.
• Support strategic decisions.
• Improve financial control.