Accurate forecasting is vital to day-to-day business operations, as well as to long-term planning. Inaccurate forecasting can quickly lead to trouble. And it's important to use the right forecasting technique depending on the forecast's intended purpose.

For example, you would develop a long-term sales forecast to project future sales levels. For long-term sales forecasting, you consider macroeconomic and product-specific factors: long-term economic forecasts, growth opportunities, competition, an analysis of your company's products and services, and any required investment and expenses.

A pro forma forecast has a different purpose from a sales forecast. A pro forma forecast can help you conduct period-over-period analysis, evaluate a potential merger transaction, or assess the impact of different assumptions. You can use the data from the long-term forecasts to create a projected pro forma balance sheet and statement of cash flows.

Use the following links to get the information and tools you need to use forecasting successfully in your business.

• Techniques for successful forecasting (Article)
  Learn how to make the most of forecasting, avoid forecasting pitfalls, and use forecasting as a dynamic process — not just once a year.
  
• Check that hunch with Excel "what-if" scenarios (Demo)
  Compare scenarios and see multiple results from one set of data.
  
• Use what-if scenarios to project future values (Article)
  Develop multiple scenarios to help determine the best course.
  
• Forecast inventory levels with Moving Average analysis (Article)
  Manage your inventory investment wisely by projecting demand.