Most large organization spend a considerable amount of resources performing some type of financial forecasting. Conversely, small and medium-sized businesses spend less time on planning for the future. Larger organizations have more to lose, therefore, the need to actively assess changes in the market to take advantage of opportunities or avoid risks becomes a more…
Various studies show that increasing financial forecast accuracy will lead to higher profits, lower inventory levels and a higher share price. By how much varies by industry, time period forecasted, forecast measure, business model and a myriad of other factors that all play into the financial forecast itself. With the speed of business constantly increasing,…
All budgets and forecasts are inherently inaccurate at the onset. Even the most freshly minted prediction of the future 2 minutes ahead have unknown inaccuracies that make it imprecise. Many people get confused with this and think that because a forecast can never be 100% accurate that it is useless. That is not the case. Financial…