![]() No forecast is ever a guarantee, but you can have a good degree of confidence in these types of financial forecasts because they come from hard numbers that you know to be true. It’s most commonly used to analyze business performance and scenarios, and is particularly helpful when you have a good record of historical information.įor example, you would use a quantitative forecasting method to predict the value of a regular client’s sales order, or to analyze how much of your bank loan you will have paid off by a certain point in the future. Quantitative financial forecasting is based on real data, such as bank balances, financial statements and sales. What are the types of financial forecasting methods? Quantitative methods ![]() You can use different methods in isolation or in combination with each other. There are a range of financial forecasting methods you can use, depending on the type of information you have and the kind of insights you want to generate. In a Brainyard survey in 2020, 72% of business leaders said financial planning and analysis was becoming increasingly important to them.īut it’s not a straightforward task. By painting an accurate picture of foreseeable business in the future, you can help to identify strategic initiatives to improve on your businesses weaknesses and capitalize on your strengths.įorecasting is seen as hugely significant. Financial forecasting provides the basis of key business decisions.
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