Help businesses make decisions about resources (e.g. machinery, staff, stock)
Finance- Sales revenue is usually a firm's main source of cash inflow, so sales forecasts are important to be able to generate accurate cash flow forecasts
If sales are forecast to decline
A business may decide to launch a promotional campaign to increasesales and cash inflow
Sales forecasts help to make sure the firm has all the resources it needs so that it can meet the predicted demand, but doesn't waste money on resources when sales are expected to be low
