Budgeting is an important component of financial success for any business. A budget is a business’s financial plan to better manage monthly, quarterly and annual cash inflows and outflows. The purpose of budgeting is as follows:

• Provides a benchmark of evaluating performance against financial goals and objectives
• Helps an organization allocate financial resources between various operating groups
• An effective communication tool used to express financial goals and objectives of the organization
• Enables the organization to authorize the use of financial resources

Forecasting is a process that allows business’s to use historical data to make financial projections in the long-run. The purpose of forecasting is as follows:

• A useful tool that provides information to make intelligent business decisions
• Helps to identify unexpected issues; therefore, allowing timely corrective action
• Allows companies to quickly identify potential opportunities
• An effective communication tool used to express expected/anticipated financial results

Many people are often confused with the differences between budgeting services and forecasting services. Budgeting is a financial plan that is prepared annually and it identifies desired results (goals and/or objectives) of a company. Forecasting is a projection of expected results within a given year. Note the difference: budgets are financial plans with desired results; whereas, forecasts are predictions of expected results.

Harmonic Accounting works to provide budgeting services to help you better integrate your company’s strategic plans with the different kind of budgets. Our Business Forecasting Services helps company compare the projected results with the actuals. We will work with you to look at major differences between actual versus forecasted, and provide feedback and/or comments on areas of improvement. It is very important for most small to mid-size companies to prepare financial forecasts that are very closely aligned to the company’s overall goals and objectives.

Harmonic Accounting provides Business Forecasting Services and Budgeting Services to many businesses, from small start-ups to large incorporated businesses. We are always ready to help you out with all of your business’s financial and accounting needs.