Financial Forecasting

Financial forecasting is the process of estimating future financial outcomes for a business or organization based on historical data, market trends, and economic indicators. It involves analyzing past financial performance and external factors to predict future revenues, expenses, cash flows, and overall financial health. Financial forecasting is critical for budgeting, strategic planning, and decision-making, as it helps organizations prepare for potential financial challenges and opportunities. Forecasts can be short-term or long-term and are typically expressed in financial statements or financial models. Accurate financial forecasting enables companies to allocate resources effectively, manage risks, and set realistic financial goals.