A budget is designed to predict expected revenue and expenses during a specific period before the budgeted period starts. It's usually prepared for one accounting period, and is usually limited to the income statement (or profit and loss) accounts. People usually compare a budget to actuals when looking back at how the business performed. A forecast is an estimate of financial outcomes based on set assumptions, and can be prepared in a way that combined your financial health (balance sheet), cashflow, and profit and loss to get a clearer picture of the future. A budget and a forecast are not the same things, and business owners sometimes use them interchangeably despite having different goals