Importance of financial forecasting research paper
Answers
1) The lack of planning and control of cash resources is the reason often given for the failure of many small businesses. By undertaking good financial forecasting , buisnesses can help reduce his buisness risk.
2) A financial forecasting is a simply financial plan or budget of your business. It is an estimate of two essential future finincial outcomes for a business, your projected income and expenses.
3) Much like a map,helps you a plan a long journey , a financial forecast hepls you achieve your goals and get your business to where you want to be....i hope it helps you
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Answer:-
A financial forecast always starts with a deep understanding of how finances work for your business. This includes a drill-down analysis of cashflows, incoming revenue streams, debts, potential threats, and market shifts, to name just a few. At the most basic level, a financial forecast predicts the state of your business finances. This gives you the opportunity to measure actual progress and anticipate potential problems before they arise. As a result, forecasts help you identify, set, and hopefully meet your most important business goals.
This is especially relevant for businesses undergoing significant structural changes or experiencing rapid growth. These elements have a huge impact on future cashflows and the overall financial performance of your business.