Budgeting

 

To me budgeting has always been somewhat a difficult topic. Whether it comes to the budgeting of my everyday life or the budgeting of a new business project. However, during the past year as a development manager I have faced many situations where I have had to look into the world of budgeting. Thus, it has been very interesting to learn about it from the profitable tourism business perspective. 

During this week I learned the difference between forecasting, budgeting and strategic planning. Forecasting is about short-term predictions of the levels of trade, whereas strategic planning is a long-term plan. And finally, budgeting is about seeing the measures how to feasible achieve the set business goals and objectives. In a nutshell, budgeting is a tool to see into the future.

My biggest take away from the past week's studies has been understanding the importance of planning. It is not enough to check the balance sheet every now and then but it is also essential to plan ahead and set goals for the future of the business. How is your business working towards the long-term goals during this year? If you don't know, figure it out! ;)

Cheers!