Finance forecasting is the process of using historical financial data to anticipate and plan for upcoming fiscal periods. It is a critical part of sound business planning, helping organizations make informed decisions about investments, market trends, resource allocation, and more. Through financial forecasting, businesses can assess potential losses or gains and decide how to allocate their resources accordingly. By looking at past financial performance, it is also possible to identify any anomalies or trends that could influence future plans. With a thorough understanding of the financial forecast, businesses are empowered to make well-informed decisions that anticipate future needs and seize opportunities.