Financial Projections

Abstract

Forecasting helps managers guide strategy and make informed decisions about critical business operations such as sales, expenses, revenue, and resource allocation. When done right, forecasting adds a competitive advantage and can be the difference between successful and unsuccessful outcomes. Many business managers complain that building forecasts with any degree of accuracy takes a lot of time. The time may be better spent selling rather than planning. But few financial institutions will put money in a business if it’s unable to provide a set of thoughtful forecasts. More importantly, proper financial forecasts will help develop operational and staffing plans that will make a business more efficient.