Many business owners use the terms budget vs forecast interchangeably. This common mistake can lead to significant financial missteps. While both are essential financial tools, they serve very different purposes.
A budget is a strategic plan for what you intend to do, while a forecast is a dynamic projection of what you might actually do.
Knowing the crucial difference between budget and forecast helps you plan better and adapt faster to changing market conditions. This article will clarify what is the difference between budget and forecast and explain why both are vital for a healthy business.
