Accurate market and product forecasts are central to making many decisions within an organization, from its long-term strategic plan to a weekly operational planning level. Using robust production and Financial Planning & Analysis software allows you to know how much demand there will be for your products or services. That way, you can plan and increase production if necessary. Here are some reasons why forecasting is an integral part of any business:
i. It gives you a clear picture of what you can expect in the future.
ii. It helps you plan your budget & spending accordingly.
iii. It helps you understand customer behavior & predict demand based on past trends.
iv. It helps you identify risks & opportunities in advance so that you can take action when they arise.
v. It allows businesses to make better decisions by using historical data as a basis for future forecasts & analysis (for example, sales forecasting).
vi. By forecasting revenue & expenses ahead of time, you can identify potential risks before they happen.