A financial plan, a forecast, and actual financial results are essential components of financial management in any business. While they share similarities, they each serve distinct purposes and differ in their time frames.A plan, or the budget, outlines a company's financial goals and objectives. It sets targets for revenue, expenses, and cash flow. A forecast is a forward-looking analysis that projects future financial performance based on current information and market trends. As the name suggests, actual financial results are the real outcomes of a company's financial activities.