Budget Preparation and Forecasting
- Art Teacher
- London, UK
- 5-7 Hrs
At Aarthika Globcorp Solutions, we specialize in Budget Preparation and Forecasting Services that act as a financial roadmap for businesses of all sizes, from startups to large enterprises. Operating without budgeting is like running a business without direction, as it not only hinders resource allocation but also limits strategic growth. While bookkeeping records past transactions, budgeting and forecasting focus on the future by allocating resources efficiently, setting spending limits, and ensuring that every rupee is aligned with business goals. Forecasting leverages historical data, market insights, and predictive analysis to estimate revenues, expenses, and cash flows, enabling businesses to plan ahead with confidence. Together, budgeting and forecasting provide the foundation for strategic decision-making, cost control, and investment planning, while also enhancing financial credibility with investors, lenders, and regulatory authorities. With our expert financial team, we help you create accurate, compliant, and actionable budgets that drive sustainable growth.
- Previous years’ financial statements
- Historical sales and purchase data
- Current year’s performance reports (P&L, cash flow, balance sheet)
- Market research reports and industry trends
- Pricing policies and sales projections
- Fixed and variable expense details
- Payroll and HR cost estimates
- Loan repayment schedules and interest obligations
- Tax computation and compliance requirements
- Capital expenditure plans
- Inventory and procurement schedules
- Review Historical Data
- Set Business Objectives
- Estimate Revenue
- Forecast Expenses
- Create Draft Budget
- Scenario Planning
- Review & Approve
- Implement & Monitor
FAQs
Budget preparation is not a legal requirement for all businesses in India; it is mandatory primarily for government entities and listed companies, but private businesses generally prepare budgets as a best practice, not by law.
Budgets are usually prepared annually, but revisions can be done mid-year, quarterly, or as needed based on significant changes in business conditions.
Contingency reserves are not legally mandatory in general budget preparation but are strongly recommended as a prudent financial practice, especially in project and risk management contexts.
Inflation should be factored into the budget forecast by applying inflation indices (like the Consumer Price Index) to projected figures, increasing costs and revenues accordingly, often using a formula.
Capital expenditure forecasts should align with Companies Act provisions by ensuring they are transparently planned, justified, properly approved, and disclosed where necessary, particularly regarding major investments and asset creation.
Indian companies are not required to disclose detailed budget forecasts in statutory reports; statutory disclosures focus on actual financial results and not internal forecasts.
Unexpected revenues after budget approval should be incorporated through supplementary budgets, revised forecasts, or board-approved reallocations, ensuring transparency and proper documentation.