Forecast vs Financial Projections: What’s the difference?

Forecast vs Financial Projections: What’s the difference?

From Kashif SEO

In the accounting world, the terms ‘financial forecast’ and ‘financial projection’ are often used interchangeably,

Support this campaign

Subscribe to follow campaign updates!

More Info

In the accounting world, the terms ‘financial forecast’ and ‘financial projection’ are often used interchangeably, even by financial professionals who should have known the difference.

Financial forecasting predicts a company’s performance, assuming no change in a business environment. A startup can use financial forecast in line with financial projection to determine company performance in a single or multiple future scenarios. As illustrated in the above figure, a forecast is calculated using management’s judgment of the most probable future scenario, whereas a projection allows for a mix of scenarios.

Campaign Wall

Join the Conversation

Sign in with your Facebook account or