Business forecast: what it is and what it means

The forecast is the updated projection during the year: it is produced when new material information arrives that changes the picture, without replacing the original budget. It coexists with the budget: the budget says where you planned to go; the forecast says where you now expect to end up. The original budget stays unchanged as the fixed reference point for measuring variances.

Distinctive: updated projection during the year
Distinctive: without replacing the original budget
Essential: new material information
Essential: coexists with the budget
Constant: where you now expect to end up

Glossary

Business forecast

An updated projection made during the year when material information changes, without rewriting the original budget.