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Your Spreadsheet Might Be Right. Your Decision Could Still Be Wrong.

That may sound strange coming from a CFO, but it happens more often than you might think.

Most companies prepare an annual budget. Some also update their forecasts throughout the year or prepare longer-term forecasts.

There are many reasons to forecast and many different approaches to doing it. But there is one important point that is often overlooked:

A forecast is not a prediction. It is a tool for making better decisions.

I hate when people say something like “get together with a group of like-minded individuals.” To me this sounds like a bunch of people getting together to agree with each other and support each other’s beliefs.