Rami Ali, a Senior Product Marketing Manager, wrote the article “Budgeting vs. Financial Forecasting: Key Differences” on October 2, 2020. The article was published on the Oracle, a blog publication of the U.S.-based computer software company Netsuite. The author argues that a budget estimates how much money a business will earn and how much it will spend over a specific period. In lieu, he contends that a forecast uses historical and current transactional data and industry and market information to help determine how to allocate funds for anticipated expenses for a future time. However, the writer claims that budget setting and financial forecasting have unique purposes, and they work best together. The topic is of interest because the author explains that the budget details expected future results. In contrast, forecasts focus on probable future events to inform whether a company will hit the budget targets. Complying to a budget and using money as per the plan will prevent one from getting to debt. Also, it will get an individual out of all the existing debts.
Summary Analysis
The article’s main argument focuses on the importance, types, similarities, and differences of forecasting and budgeting. I agree with the article’s proposition because it comprehensively covers the financial management and budgeting topic. The topic is of paramount relevance in the healthcare administration sector because its concept is applicable in everyday work. Budgeting helps people develop an expenditure schedule; it guarantees that people still have more funds for what they need and value. Proper handling of a health system’s budgets enables patient care to be improved, the burden reduced, necessary savings made, and potential revenues explored.
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Conclusively, cash management typically entails budgeting, consumption, investing, and savings in personal and corporate finance. Financial management and budgeting are also of concern because money management is a mechanism that includes controlling and planning the use of resources by an entity or a company.
Reference
Rami, A. (2020, October 2). Budgeting vs. financial forecasting: Key differences. Oracle Netsuite. https://www.netsuite.com/portal/resource/articles/financial-management/budgeting-forecasting.shtml
