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Forecasting is important for the success of any business. Understanding where you may be in the next quarter or the next year will allow you to adjust your plans to help you get there in a more effective manner. Often getting an accurate forecast can mean the difference between a successful quarter and a big loss.
A quarterly forecast will provide you with data for a three month period. These data includes revenue and profit forecasts so that you know the inflows and outflows of your business and can make smarter decisions. Quarterly forecasts, however, tend to be less in depth than monthly forecasts since there is more data to process.
Annual forecasts evaluate data over a 12 month period. Cash flows are examined to provide you with the necessary data to form accurate business plans and adjust your business’s goals and milestones accordingly. You can even compare your quarterly and annual forecasts to check for any discrepancies and learn more about your business.
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