Accounting

Accounting covers the principles and practices of financial reporting, analysis, and management.

Practical Applications

Budgeting and Forecasting

Planning for Success

Budgeting is setting a plan for how money will be earned and spent. Forecasting predicts future financial outcomes based on trends.

Why Budget?

  • Prevents overspending
  • Sets savings goals
  • Helps prepare for unexpected expenses

Forecasting in Action

Looking at last year's sales to estimate next year's income is a simple example of forecasting.

Who Uses These Tools?

Everyone from families planning a vacation to global companies launching a new product!

Examples

  • A family creates a monthly budget to track groceries, rent, and entertainment.

  • A company forecasts sales to decide how much inventory to order.