Budget Forecast

Budget Forecast

Definition

  • Preparation of an annual budget at the corporate, divisional, or departmental (CDD) level.

Importance

  • The sales forecasts are critical for effective planning of the upcoming years.

Examples (WCSAS)

  1. Working Capital Requirements (WCR)

  2. Cash Flow and Funds Flow Statements (CF-FF-S)

  3. Sales Force Quotas (SFQ)

  4. Advertising Budget (AB)

  5. Sales Promotions and Other Promotional Budgets (SP-OPB)

Conclusion

  • A well-structured budget forecast guides financial planning and operational efficiency (FPOE).