PBF (Planning budgeting & forecasting): An important area to monitor in business & in its department
Objective of this paper is to study Planning, Budgeting and Forecasting. It is a three-step process for shaping and describing company’s long-term and short-term financial goals. The process is managed by company’s finance department which is led by Chief Financial Officer. Financial Planning outlines company's financial prospects for the next three to five years. Financial Budgeting focuses on a shorter timeframe such as the upcoming fiscal year with specific details of month and quarter. Financial Forecasting is an extended part of Planning & Budgeting which uses the accumulated historical data and management expectations about the future to predict financial outcomes for future months or years.
Identifying PBF key steps which includes; assessing the business environment, approve the business vision and objectives, identifying and quantifying the types of resources needed, calculating the total cost, summarizing the costs to create a budget, set realistic goals, identify income and expenses, design your budget, put budget into action, identifying problems within budgeted numbers, gathering actuals information, do maiden analysis, choose the forecasting model, forecasting and evaluating the numbers.
This study will help in analyzing PBF objectives & advantages and how it all helps in working of the business and its outcome. Which briefly says managing organization’s time and resources effectively, will lead to achieve organizational goals and objectives.