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[Music] the ultimate goal of every company is to earn substantial profits but it also might be that your company is paying off a large loan or is entering into a partnership with another company wouldnt it be nice if an automatic computing system could predict the chances of success or failure of this merger it would help you to determine accurately in which areas you should concentrate on in order to get the maximum returns on your investment this process is called financial forecasting in this video we are going to share six financial forecasting tips for your business plan 1 understand the purpose of financial section generally people get confused between the financial projections which include profit and loss balance sheet and cash flow and the accounting statements which your business generates as they both look similar financial forecasting is not the same as accounting forecasting is forward-looking starting today and going forward into future whereas accounting looks backward