BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Financial forecasting is the process of estimating or predicting how a business will perform in the future. The most common type of financial forecast is an income statement; however, in a complete financial model, all three financial statements are forecasted.

Detailed explanation-2: -Financial forecasting involves the creation of specific financial statements that reflect risk and outlook based on relevant facts and trends. These statements are sometimes also called pro-forma statements.

Detailed explanation-3: -What Is Financial Forecasting? Financial forecasting is predicting a company’s financial future by examining historical performance data, such as revenue, cash flow, expenses, or sales. This involves guesswork and assumptions, as many unforeseen factors can influence business performance.

Detailed explanation-4: -Long-term financial planning involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues.