Question

What value do you see in forcasting expenditures and revenues into the future?

Answer 1

The value that can be observed in revenue and expenditure forecasting in the future, starts with the a precise idea of cash inflows and outflows and it helps the firm to procure the necessary funds so that any gap between expenses and revenue flows ic covered. It prevents any hiccups in the operations and organization runs smoothly. The second value that can be observed in stable cash management, inventory management and working capital management with excess inflows over outflows can be invested in other avenues.So, resources are properly utilized and more value is created for the organization. The third value drawn is to build plans for the future and readjust the vision, since the organization now has forecasting of revenue and expenses. It helps the organization reach the level where it should be with the given level of resources.

So, above are some of the value that is seen with revenue and expenditure forecasting.