Forecast
Definition
A projection of a company's future financial performance, expressed through revenue, expense, and cash position estimates for one or more future periods, derived from documented operational assumptions. A forecast is distinct from an annual operating plan: the forecast represents what the company projects will actually happen, and is updated continuously. The annual operating plan represents what the company committed to achieve, and is amended only through a formal process.
Common Misapplication
The most common misapplication is updating the annual operating plan whenever actual performance diverges from the plan, effectively replacing the accountability reference with a revised target. The distinction between forecast and plan must be maintained: the forecast updates continuously; the plan amends only formally.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.1: The Forecasting Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Forecast. https://ffistandard.org/glossary/forecast/. 2026.