--- title: "Budgeting vs. Forecasting: You Likely Need Both" description: Finance leaders, need accuryou need to drive a process that allows other company leaders, investors, and boards to see where you are headed. Without accurate data, course corrections are challenging to accomplish. image: https://images2.welcomesoftware.com/Zz00NjU1ZTQ2ZTQ2NmQxMWVkODFmZTdhMDU0NGJmMTBiZA==?width=800&q=80 --- ##### Post - [All Articles](https://blog.ramesysglobal.com) - [News and Articles](https://blog.ramesysglobal.com/tag/news-and-articles) - [Podcasts](https://blog.ramesysglobal.com/tag/podcasts) - [Case Studies / Client Experiences](https://blog.ramesysglobal.com/tag/case-studies-client-experiences) All Articles All Articles News and Articles Podcasts Case Studies / Client Experiences [Ramesys Global Admin ](https://blog.ramesysglobal.com/author/ramesys-global) - Sep 3, 2024 - 1 min read Share Post Share Post Share Link Cancel Copy Link # Budgeting vs. Forecasting: You Likely Need Both When planning for the upcoming year, CFOs should treat budgeting and forecasting as standalone pieces of the financial puzzle.   Michael Paull - CFO.com ![Budgeting vs. Forecasting: You Likely Need Both](https://images2.welcomesoftware.com/Zz00NjU1ZTQ2ZTQ2NmQxMWVkODFmZTdhMDU0NGJmMTBiZA==?width=800&q=80) *"In many cases, performance relative to the budget drives incentive compensation, staffing decisions, and many other decisions and outcomes. Moving the goalposts during the game is not a good idea."*   In this article: 1. So, what do you do when your vice president of sales or business unit leader calls for a budget revision?  2. Unlike the budget, the forecast can and should be updated often.  3. The forecast should tell you where you will likely end the year. The budget ideally would tell you the same but is only as good as when it was compiled and approved.  4. When creating the budget, you used your best knowledge at the time. The forecast, however, should always be up to date.  5. Variance analysis will be instructive in determining where you were off base so you can improve the budget process next year.    Read the full CFO article here: [https://www.cfo.com/strategy/2022/10/budgeting-forecasting-revision-visibility-goal-setting/](https://www.cfo.com/strategy/2022/10/budgeting-forecasting-revision-visibility-goal-setting/)   Ramesys Global: Ramesys is an all-in-one budgeting, forecasting and reporting platform, purpose-built for the mining industry, that offers complete cost visibility across the entire organisation.    Our goal is to make it easier for mining companies to achieve a transparent understanding of their cost performance, develop a cost-conscious culture and create a single source of truth that helps key stakeholders make better decisions, faster.  Share Link Cancel Copy Link 0 comments ### Recent Posts [See All](https://blog.ramesysglobal.com) [Unveiling the Hidden Costs of Poor Data in Mining](https://blog.ramesysglobal.com/unveiling-the-hidden-costs-of-poor-data-in-mining) [ 0](https://blog.ramesysglobal.com/unveiling-the-hidden-costs-of-poor-data-in-mining) [When Oil Shocks Hit the Mine Plan: Why Scenario...](https://blog.ramesysglobal.com/when-oil-shocks-hit-the-mine-plan-why-scenario-planning-matters-more-than-ever-clone) [ 0](https://blog.ramesysglobal.com/when-oil-shocks-hit-the-mine-plan-why-scenario-planning-matters-more-than-ever-clone) [Escape from Excel Hell: How Budgeting Went Off...](https://blog.ramesysglobal.com/escape-from-excel-hell-how-budgeting-went-off-the-rails-and-how-to-get-it-back-clone) [ 0](https://blog.ramesysglobal.com/escape-from-excel-hell-how-budgeting-went-off-the-rails-and-how-to-get-it-back-clone) [Client Experiences - Ramesys Maintenance...](https://blog.ramesysglobal.com/client-experiences) [ 0](https://blog.ramesysglobal.com/client-experiences) ## Comments ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ramesys Global", "url" : "https://blog.ramesysglobal.com/author/ramesys-global" }, "dateModified" : "2024-09-18T02:24:34.899Z", "datePublished" : "2024-09-03T05:48:56.000Z", "headline" : "Budgeting vs. Forecasting: You Likely Need Both", "image" : [ "https://images2.welcomesoftware.com/Zz00NjU1ZTQ2ZTQ2NmQxMWVkODFmZTdhMDU0NGJmMTBiZA==?width=800&q=80" ], "mainEntityOfPage" : { "@id" : "https://blog.ramesysglobal.com/budgeting-vs.-forecasting-you-likely-need-both", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.ramesysglobal.com/hubfs/Logo%20Capture.png" }, "name" : "Ramesys Global" } } ```