MANAGEMENT

Detailed explanation-1: -Financial forecasts are an essential part of business planning, budgeting, operations, funding-they simply help leaders and outside stakeholders make better choices. A financial forecast is an estimate of future financial outcomes for a company, and it’s an integral part of the annual budget process.

Detailed explanation-2: -A financial forecast is an estimation, or projection, of likely future income or revenue and expenses, while a financial plan lays out the necessary steps to generate future income and cover future expenses.

Detailed explanation-3: -Why is financial forecasting important? Financial forecasts allow you to make more informed business decisions rooted in facts and data. Getting in the habit of creating a monthly financial forecast allows you to plan your next steps in relation to funding, operations, and budgeting.

Detailed explanation-4: -Financial forecasting refers to financial projections performed to facilitate any decision-making relevant for determining future business performance. The financial forecasting process includes the analysis of past business performance, current business trends, and other relevant factors.