FP&A Interview Questions: Difference between Budget and Forecast

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FP&A Interview Questions: Difference between Budget and Forecast?

In this video, I will be answering a typical FP&A Interview Question and provide some tips on how to answer the question : What is the difference between Budget and Forecast?

This is a common question asked in FP&A interviews. This video will show you the difference between budget and forecast, their main differences, and how they are used to making strategic decisions.

I'll show you how to confidently answer the question, provide some tips on how to answer the question and provide an example of what's the difference between forecasts and budgets.

We will cover the following points:
What is a Budget?
What is a Forecast?
What are the differences between a Budget and a Forecast?
Why both Budgeting and Forecasting are important Management tools?
and How are both connected?

#fp&a interview questions
#fp&a
#financial planning and analysis
#fp&A career path
#fp&a analyst
#Difference between Budget and Forecast

[swadhinkumarmallia]

0:41 Budget
1:14 Forecast
1:40 Difference Between

[shrutiarora]

Don't have words ro tell you how well you explained the two terms and not just their meanings but their relationship and importance as well 👏👏

[tamilarasanvenkatesh]

Thank you very much Sir! For all the videos and also for sharing the files. Got a lot of info and Details form it. 🙏

[helpinghands]

How can I get hands on experience for budgeting and forecasting?? Please help

[vijaywadhwa]

Thanks for your valuable content, Just a request can you please make a video on how we can grab or enter into the FPNA profile.

[manideepchakilam]

Can we say forecasting is like expected score based on current run rate in cricketing terms

And budget is the plan in mind to score these many runs at the very first balll

[izualocampbell]

Can you share some more material on the Budget vs Forecast?

[izualocampbell]

But I like your explanation and preparing my self to do a Masters in Accounting in September

[elcid]

Hi,
I have a doubt please between "Normal" Budgeting and Financial Modeling.
I have seen many times that, in a "Financial Modeling" (usually used for valuation, M&A, Strategic Planning, and similars) there are NOT calculated things as costs of the products, raw materials, direct and indirect materials, direct and indirect labor, planned level of production, etc., all in a depth "level of detail" as, for example, in a "Normal" Budgeting.

Am I right? Or not?

I mean, it is, or not necessary to "includes" in a "Financial Modeling" the level of detail and calculations like costs, production, etc? And why or why not?

What is the difference between a a "Financial Modeling" and a "Normal" Budget process? Are the times? (1, 2, 3, N years) What are used for? What more?

If I do a Business Plan, do I need a “normal” and detailed budget, or a a Financial Modeling? and for a Strategic Planning?

Because both looks forward to the future, and both finish in the three statements (Balance, P&L and Cash Flow), I'm some confused.

Thank you in advance for your advice!

[melissafernandes]

What is the difference between a forecast and a flexed budget?

[asifmasani]

If you liked this webinar and interested in learning more about FP&A
to get a FREE copy of my eBook "All about FP&A"

[CARRIER-GROW-WITHSUSHIL]

Sir Kya aap budgeting forecasting practically sekha sakte ho I Will pay fees

[caramireddych]

Sir Can you send me FP& A e book,
As I am trying to get job in FP&A.