Financial forecasting is the process of estimating future financial outcomes based on historical data and market trends. It helps businesses and investors make informed decisions by predicting revenues, expenses, and cash flows. Accurate forecasts can guide strategic planning and resource allocation, ultimately contributing to a company's success. Various methods are used in financial forecasting, including quantitative techniques like regression analysis and qualitative approaches such as expert judgment. By combining these methods, organizations can create more reliable projections, allowing them to navigate uncertainties in the financial landscape effectively.