By Rob Trippe, MBA, Financial Modelling Veteran
Many sophisticated business environments use budgets as a bridge between actual and forecast. Within the corporate finance domain, budgets are used to allocate resources and provide a starting point for current and future period estimates. Budgets and revised budgets are often communicated to shareholders and the investor community in numerous ways such as earnings estimates and road show presentations in the form of a “current estimate”. The budget becomes a foundation for expectation.