The importance of business forecasting explained
But what does it mean and why is business forecasting so important?
Read on to find out so your business can effectively plan for 2015 when it comes to finances.
What exactly is forecasting?
According to investopedia.com, forecasting is the use of historic data to determine the direction of future trends.
You can use forecasting in your company to determine how to allocate your budgets for an upcoming period of time, in this case 2015.
You can base this on the demand for the goods and services you offer, compared to the cost of producing them.
Forecasting, according to investopedia.com, also provides an important benchmark for companies that have a long-term perspective of operations.
Now let’s look at the importance of business forecasting…
You can use them individually or while you create your operating budget. You’ll draw figures from these budgets so you can keep control of costs and maximise profit. Each budget chapter comes with a free Excel budget template for you to customise and use straight away.
Find out more here…
Here’s why business forecasting is crucial
Business forecasting is more than a simple prediction. It involves analysing information about your business, the economy, the market place and current trends to prepare for your business’ future, says brighthub.com.
If you do it right, it can make your business more profitable.
Essentially, forecasting is important when it comes to business planning, business success and business management.
In the business world, you can’t afford to just “wing” it, you have to plan and prepare for the future. And business forecasting is the one thing you can’t neglect.
So how do you do a forecast?
There are a number of different methods you can use to forecast, but we recommend you use Excel because it’s simple and effective.
If you’re not familiar with Excel or don’t know how to navigate through it, check out the Excel Training DVD 2014: Solutions to Your 35 Biggest Excel Finance Problems.
Now that you know all about the importance of business forecasting, don’t put it off, do it so you can effectively plan for 2015 when it comes to finances.
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