Financial forecasting, Finance Basics

Financial Forecasting

Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using budgets.

The financial forecasting and planning will determined also the firm the activities should undertake in order to achieve its financial targets.

Financial forecasting is significant in the following ways like:

1. Facilitate financial planning that is determination of cash surplus or deficit such are likely to happen in future.

2. Facilitate control of expenditure.  This will minimize wastage of financial resources in order to get financial targets.

3. It avoids surprise to the manager's as any cash deficit is identified well in advance so the firm can plan for sources of short term funds that as bank drafts or short term loans.

4. Motivation to the staff - Financial forecasting using targets and budgets will enhance unity of purpose and objectives among staff that are determined to achieve the set target.

Posted Date: 1/30/2013 2:27:22 AM | Location : United States







Related Discussions:- Financial forecasting, Assignment Help, Ask Question on Financial forecasting, Get Answer, Expert's Help, Financial forecasting Discussions

Write discussion on Financial forecasting
Your posts are moderated
Related Questions
For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal

what will happen to the loss on account of premium redemption of debenture through sinking fund? Where do i close this account to?

From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

calc the nimonal(annual percentagerete)interest rate if the iffective interest rate earned on an investment is 16.08%/Unum but interest is calculated at the end of each month

Competitors and General Public - Measuring Business Performance Competitors These are interested in the company's presentation from the market share point of view and wi

Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving

Shareholders' wealth maximization - Objectives of Business Entity Shareholders' wealth maximization refers to maximization of the total present value of each decision made in

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing value