3. Defining and building the budget

A budget is a quantified financial forecast, associated with an action plan corresponding to the objectives defined, and including the means decided upon to achieve these objectives.

The action plan defines how the set objectives are to be achieved.

The forecast figures are simply the financial translation of this action plan.

The term budget is used to refer to the company's overall forecasts and objectives, as well as to the forecasts and objectives of a given division, department or project.

It is then necessary to build :

• a sales budget ;

• a commercial budget ;

• a purchasing budget ;

• a production budget ;

• ...