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Antiquated processes and tools combined with misconceptions regarding forecasting accuracy have hindered the quality of forecasting processes around the world, producing often questionable forecasts. Yet, organizations have good reason to strive for accurate forecasts.
At a minimum, you use forecasts to establish budget parameters, determine compensation and commission levels, and set prices, which are, of course, based on your forecasts of the costs of the goods and services required to produce your product or service. It entails a lot of work if you try to do it well. Or, you could skip forecasting and just wing it (which will, of course, save money but increase business risk).
Read the full story at the Big Fat Finance Blog.
