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The rapid rise of the Russian market during the past decade necessitated little research or projection. Financial estimates have taken the role of plans. For many years, figures served as a foundation, and they were characterized by a positive trend computed in percentage parity. The enormous gains and rising prices more than made up for the blunder.

When all of this was missing, the only way to ensure the company’s financial health was to make cautious projections.

In management accounting, which is the cornerstone for firm management and decision making, planning must always come before forecasting. The better the budget, which is the cornerstone of management accounting, the more exact the estimate. Sales planning budgets are based on estimates, and sales budgets, among other things, establish budget costs, according to the company’s business strategy. As a consequence, even during a recession, we can maximize the certainty impact on the company’s financial stability by using precise financial estimates.

Financial projection is a creative process that uses intuition and logic to identify causal relationships and trends.

All of the company’s service leaders should be engaged in obtaining, processing, and interpreting the basic analytical data. In times of economic turbulence and market stagnation, short-term (one year) and operational (a few months) projections are useful for projection and subsequent planning. This will increase operational reactivity and flexibility in the circumstance. The forecasts should contain at least two scenarios: optimistic and pessimistic. In the case of a calamity, this will help with operational choices and sustaining stability. The worst aren’t working towards a bad end; they’re not equipped to work under such conditions.

For improved forecasting, it is necessary to separate the worldwide and local ecosystems. External variables include everything you can’t control, yet they have an immediate influence on the whole market for particular goods and business plan services (macroeconomics, legal acts). All events, objects, and processes over which you have control are referred to be internal. The immediate object of projection is the market on which you operate.

Not all data is factually correct and objective. When it gets too high, though, the average number kicks in and the whole picture becomes visible. The most important rule is to collect and evaluate data in a systematic and regular way.