Budget Forecasting

It is an important planning and forecasting process to help you manage. Budgeting is simply balancing your expenses with your income.

What is budgeting ?

 
Is the budget containing the estimates estimates about the activities of the company's activities within a certain period to come, as well as contain estimates estimates about the State or the company's financial position at the time to come.  Budgeting and forecasting are two different, yet equally important financial animals, and this article will help you make sense of them both.

Budget are grouped into two, namely:

1. Operating Budget
2. Financial Budget

Operating Budget

The company's activities during this period include two sectors:

1. Sector earnings (Revenues)

The main income of the sub-sectors
Sub-sector earnings are not the Main

2. Sector costs (Expenses)

Sub-sectors of major Costs, including the cost of the plant, administrative costs, costs of sales.
Sub-sector Cost Not Main.

Financial Budget

Planning of the company's financial position at a given moment to come, while the company's financial position meant by is the State of Assets, debt and private equity firms at one time.

THE STAGES OF PREPARATION OF THE OPERATING BUDGET

The first alternative, the size of the sale is determined by the size of the production.
The second alternative, the size of the production is precisely determined by the size of the sale.

THE STAGES OF PREPARATION OF THE FINANCIAL BUDGET

If the company will devise Financial Budget, must pay attention to and take into consideration the Operating Budgetnya or Operating Budget should be drawn up earlier than the Financial Budget.