The importance of an accurate sales forecast to financial management in general is well documented. Although large firms' forecasting practices as they relate to financial management have been surveyed, this is the first such study on small (manufacturing) firms. Surprisingly, the two groups are highly similar with respect to accuracy desired accuracy achieved, the uses of the sales forecast, and in the importance of the sales forecast. However, large and small firms do differ significantly in methods, perceived sophistication of methods, and in the commitment of resources to the sales forecasting effort.

JEL Codes

G32, L25, L60


Financial Management, Firm Performance, Sales Forecasting, Manufacturing