Master Note of Accounting and Finance

Introduction Forecast is a predict or estimate a future event or trend. In other words, it is the prediction of future data based on past data and/or human judgment. Financial forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists the firm in identifying the assets requirements and needs for external financing. The financial forecasting is the major part of the financial planning under Financial Management. The financial planning includes major three types of planning are listed as below: Strategic Planning: It defines, how the firms plans to make money in the future. It is the process of formulating, implementing and evaluating and controlling the implementing strategies. Long-term Financial Planning: Generally, it prepares three to five years projected income statements and balance sheet. It is