Forecasting helps in the promotion of business by anticipating the uncertainties and risks in the business & taking appropriate measures. It also helps in estimating the demand for products & services & how to increase the demand, how the organization will face the competition, etc.
depend entirely on sound financial forecasting. estimating the financial requirements of a business & efficient utilization of the capital by calculating the potential sales & costs & forecast the funds required for other important things like expansion, development etc.
orecasting helps the organizations know their expected earnings to regulate their cash flow to meet their operational expenses & other financial commitments.
The correctness of management decisions related to utilization of resources for production, is heavily dependent on accurate forecasting. It also helps the business to face adverse conditions & unforeseen contingencies.
orecasting helps in preparation of plans of other depts in the organization like procurement of raw materials, financial planning of working capital, manpower planning about how much people are required, production planning about what & how much to produce, etc.
orecasting is an essential element in planning since planning premises include forecast data having enormous implications. In fact, forecasting is done prior to planning in order to make effective & robust business plans. Hence, forecasting and planning are closely related & so is their success.
Forecasting is a herculean task that requires cooperation & coordination between all the depts in a company. A crucial byproduct of forecasting is team spirit and coordination which greatly improves the work culture in the organization.
Forecasting helps the different depts. & their key decision makers about their weaknesses & helps in implementing appropriate measures to overcome these weaknesses & achieve better control they can overcome these weaknesses.