Budgeting and forecasting are processes that determine and map out an organization’s short- and long-term financial goals: 

Budgeting details show how the plan will be carried out month by month and cover items such as revenue, expenses, potential cash flow and debt reduction.

Traditionally, a company will designate a fiscal year and create a budget for said year. It may adjust the budget depending on actual revenues or by comparing actual financial statements to determine how close they are to meeting or exceeding the set budget.

Forecasting takes historical data and current market conditions and then makes predictions, as to how much revenue an organization can expect to bring in over the next few months or years. Forecasts are usually adjusted as new information becomes available.