Tuesday, 10 July 2012

Financial Forecasts and Budgets

Financial Forecasts

A financial forecast is all about predicting and trying to obtain targets in order for the firm to survive. A financial forecast it must be said is only a forecast. For instance have you ever looked at the weather for tomorrow and get it wrong? This means the art of forecasting can never give 100% accuracy.

The main examples of financial forecast include a cash flow forecast and a sales flow forecast.

To find out more about financial forecasts in Ireland check out this link:


This link highlights Irelands Economic forecast for 2012 and also looks back on previous years to see whether the economic situation is getting better or worse:


How to Make A Financial Forecast 

Uploaded by on May 28, 2008

Financial Budgets

To begin a budget is a business plan expressed in financial terms. This sets out activities and the cost of them for future periods. Budgets are essential in order to run a functioning profitable business.

For example a company OKEA earns €2000 in one month of sales. They make a budget to purchase stock of €1000 and have rent and heating bills of €500 for the next month. OKEA have €500 left over from the €2000 of sales. Thus the company has come in under budget.

Examples include a cash flow budget purchases budget, sales budget and a master budget.

To learn more about budgets check out this website:


Check out this link to read about the European Union affects the Irish Budget for 2012:


With countries such as Ireland who need to increase revenue to balance the national books, here is a link of what happened in Budget 2012 for Ireland:


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