Financial statement forecasting is a process that evaluates the likely future performance of a business based on past and current financial data. It involves analyzing operating, investing and financing activities, as well as the overall economic environment, to arrive at predictions about future cash flows and results. The goal of forecasting is to provide stakeholders with an understanding of how their investments are likely to perform in the months and years ahead, allowing them to make informed decisions on where to allocate resources and how to position themselves for success.