Financial Planning and Forecasting
The concept explains the structured methodology that allows organisations to evaluate future financial needs. It also reviews how this technique is used to assess the amount of cash the company requires if a project develops more quickly or slowly than expected.
Technique Overview
Financial Planning and Forecasting Definition
Financial forecasting uses techniques to determine the additional financing a company may require in the future (Moyer et al., 2008). It also helps assess a new venture's profitability (Longenecker et al., 2005). Methods include assumptions, expectations, scenarios, sales percentage, and more mathematical approaches, such as financial ratio or regression analysis-based forecasting. According to Tuovila (2025), financial forecasting helps organizations predict business trends, allowing them to adjust strategies and ensure long-term financial stability.
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Business Evidence
Strengths, weaknesses and examples of Financial Planning and Forecasting *
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Business Application
Implementation, success factors and measures of Financial Planning and Forecasting *
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Professional Tools
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Further Reading
Financial Planning and Forecasting web and print resources *
Financial Planning and Forecasting references (4 of up to 20) *
- Eklund, P., Kang, S., Tam, M., & Xiao, L. (2023). Putting the ‘A’ back in FP&A. McKinsey & Company. Available at: https://www.mckinsey.com.br/capabilities/operations/our-insights/putting-the-a-back-in-f-p-and-a
- Klayman, B. (2010) Nike future orders disappoint, shares fall. Reuters, 22 December. Available at:
[Accessed on 8 December 2011]. - Longenecker, J.G., Moore, C.W., Palich, L.E., Petty, J.W. (2005) Small Business Management: An Entrepreneurial Emphasis. Cengage Learning.
- Mayes, T.R., Shank, T.M. (2009) Financial Analysis with Microsoft Excel 2007. Cengage Learning.
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