Forecasting is the Basis for Planning
Forecasting should be the basis for your most important planning decisions. For example, you need to be able to predict how to plan for additions to staff, salary increases, changes in scheduling, facility costs, labor requirements, benefit increases, inventory, production, expense increases, purchasing, etc. After Actuals occur and new Forecasts are developed, the Budget is no longer what is managed to; it is now only a reference point. Every new Forecast becomes the basis to manage to.
Forecasting allows you to combine insights with facts to make better decisions and stops you from making emotional or gut decisions that may feel right at the time but don’t hold water after seeing the anticipated results after forecasting.