By De’Bora V Johnson
The Importance of Understanding Budgeting vs Sales Forecasting to Improve Your Bottom Line
There are many things that Christian business owners need to manage each day while being sensitive to God‘s voice during the process. As God leads us to make the best business decisions possible, it’s important to be aware of the minute details and the big picture – all while striving to make a net profit. Your paragraph text
With everything going on, many business owners struggle to manage their company’s accounting and finances. Having a clear understanding of budgeting and sales forecasting will help us become wise and savvy stewards of the business that God has entrusted us with. In this article, we will discuss budgeting and sales forecasting, including their roles and understanding the differences between them.
Budgeting vs. Sales Forecasting Although many entrepreneurs use the term budgeting and forecasting interchangeably, there is a difference. Both budgeting and sales forecasting are critical financial management and planning tools. However, each of them serves a different purpose. Budgeting involves controlling the financial resources we currently have, whereas sales forecasting involves projecting sales that we hope to generate in the future. During the sales forecasting process, business owners can implement business planning and development strategies that could improve financial outcomes. In the following two sections, we discuss the differences between budgeting and sales forecasting. What Is Budgeting? Based on historical financial data, budgets are reports that help limit how much a company should spend within a specific timeframe. They help business owners identify how much they should set aside for monthly costs and expenses to operate their business. March 2025
40
