Financial Forecasting Explained

Financial forecasting is a critical aspect of business planning. By analyzing historical data and market trends, businesses can make informed predictions about future financial performance. This process is essential for budgeting and strategic decision-making.

Forecasting Methods

• Quantitative Analysis: Using statistical methods to predict outcomes.
• Qualitative Analysis: Incorporating expert opinions and market research.
• Scenario Planning: Preparing for various potential outcomes.

Effective forecasting can lead to better financial management.