Definition
A financial forecast estimates future income, costs, cash flows or other financial indicators using available data, assumptions and anticipated scenarios.
Human Explanation
It helps anticipate what the financial position of a project or organisation may look like in the future.
Why it Matters
It supports early identification of potential problems and preparation of alternative courses of action.
Conceptual Boundary
A forecast is not a certain prediction of the future. Its value depends on the quality of the data and assumptions used.
Practical Perspective
It should be updated regularly as project conditions, markets or costs change.