Budgeting and forecasting

Budgeting and forecasting play a significant role in playing the financial planning and strategic decision-making of a business.

Budgeting involves allocating sufficient resources for setting and achieving goals. It is a general plan that evaluates anticipated revenues, expenses, and necessary investments. Budgeting provides the framework for financial control in business operations, where the evaluation of results of activities and alignment with organizational goals is emphasized.

Forecasting assesses financial trends with consideration of future outlooks, incorporating historical analysis, market evaluation, and assessment of economic indicators. This helps businesses anticipate challenges, make informed decisions, and stay ahead in the competitive environment.

In planning, caution increases the company's resilience to possible shocks and ensures timely response to changes in regulatory conditions.

Budgeting and forecasting include:

• Analysis of business performance results
• Evaluation and consideration of economic indicators in planning
• Market analysis
• Assessment and analysis of trends
• Evaluation of forecasts
• Financial planning of budgets.

Teimuraz Abelashvili [email protected]

Loialte Finance - partner / Financial consultant