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:

http://www.ey.com/IE/en/Newsroom/News-releases/Economic-Eye-Summer-forecast-2011---Ireland-to-emerge-from-recession-in-2012


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:

http://www.oecd.org/document/9/0,3746,en_2649_37443_45269961_1_1_1_37443,00.html


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:

http://tutor2u.net/business/accounts/introduction-to-budgets.htm


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

http://www.irishtimes.com/newspaper/breaking/2012/0629/breaking1.html


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:

http://www.deloitte.com/view/en_IE/ie/insights/budget-2012-ireland/a3f504d85bfe3310VgnVCM3000001c56f00aRCRD.htm

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