Budgets and Forecast
Budgets and Forecast
Budgets and Forecast
Budgets and Forecasts are predictions of future income and expenses and cash flow. They also predict future performance with financial forecasts and projections and with financial models.

Why Budget and Forecast? Budgets and forecasts provide a feasibility analysis. They can help develop a business model, review the companys key assumptions, and identify resource and capital needs. Budgets and forecasts can be used to find funding. They demonstrate the potential of the business to investors and lenders. Budgets and forecasts can also be used as a management tool. They can help the organization establish milestones and require accountability for accomplishing the milestones. They can help identify risks and show benchmarks. This will help business owners make the necessary adjustments to avoid the risks, to reach the milestones, and to measure up to benchmarks.

Forecasts are important because it can establish measurements to guide management, to facilitate planning, and to facilitate goal setting. As part of the forecasts, the company will review key concepts and issues that will make a difference in the companys survival. The company also needs to forecast the resources it will need and set up a schedule for using and replenishing its resources.

For years, companies have viewed their budgets and forecast simply as a mandatory estimate of the upcoming years revenues and expenses. However, this attitude is quickly changing as the marketplace becomes more competitive and organizations become more dynamic. Successful companies are constantly improving their ability to accurately predict their future operations and their related resource requirements. Not only does this heighten the importance of the budgeting and planning process, but it also changes the traditional roles of spreadsheets, legacy budget systems, and software created in-house.

Applying Budget and Forecasting to a Proper Situation
The Telecommunications Company that I worked for is a results-driven company. We are never satisfied with our performance and always committed to achieving better and greater things. The companys success depends on our employees performing at the top of their game each and every day.

Though I am not from the Sales Department, I was able to gather some research about the budgeting and forecasting of our Sales Group Personnel. One important forecast is the total personnel required to support the companys desired revenue from sales. The companys revenues result from sales thus the company should start with the desired revenue in year 5. From year 5 subtract 40% from each prior year. On the basis of the research, estimate the number of sales each sales person

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Companys Key Assumptions And Sales Department. (April 3, 2021). Retrieved from https://www.freeessays.education/companys-key-assumptions-and-sales-department-essay/