A forecast is an estimate of what the business will actually achieve, and it is usually phased and updated monthly. Forecasts may be used for short-term operational considerations, such as adjustments to inventory levels, sale volumes, staffing requirements, and production plan. Forecast are commonly used to ascertain if the business will meet or exceed the expectations from the allocated budget. This information allows decision makers to set future goals, and identify trends that can be used to grade the business’ financial position