Under the Financial Planning there are two options. The Forecasting feature is the one I need info on. Is this actually a function I can use and how? Tutorial?

Forecasting is more than just a financial tool, Jerel; it’s a proactive planning technique that empowers you to set both long-term and short-term goals for your business.

Forecasting is the process of predicting future financial outcomes based on historical data, trends, and assumptions about your business's performance. In QuickBooks Online (QBO), forecasting is a tool that helps you anticipate future revenue, expenses, cash flow, and profits to make informed decisions for your business.

The difference between forecasting and budgeting is that financial budgeting is a strategy where you plan your spending. The budget you create can use information from your financial forecast, but it’s separate from the forecast itself. Think of budgeting as planning, setting targets, and comparing them to actual outcomes, while forecasting is about predicting future financial performance under various conditions.

When it comes to financial budgeting and forecasting, your forecast helps you understand the money you’ll have available in the future. Budgeting then determines how you plan to allocate that money and other resources.

Before getting started, ensure your fiscal year start date is properly set. While you can create a forecast at any time, it’s most effective when the forecast begins at the start of your fiscal year.

Here's how;

1. Sign in to your QBO account.
2. Go to the Settings icon and select Account and settings.
3. Choose the Advanced tab.
4. In the Accounting section, review the First month of the fiscal year field. If it’s incorrect, click Edit.
5. Select the required month from the dropdown and hit Save.

Please note that forecast accounts are generated from your chart of accounts. If you need additional accounts, add them to your chart of accounts before creating the forecast. You can use your company’s historical financial data as a reference, especially if it’s your first time creating a forecast.

1. Go to Financial  Planning, then select Forecasts.
2. Choose Forecast format and select Consolidated or Subdivided.
   • For a subdivided forecast, select what you want to subdivide by, like class or dimension. 
   • Note: Once added, a class or dimension can’t be removed from a forecast.
3. From the Forecast for  dropdown, select the timeframe you’re creating the forecast for.
4. From the Forecast using  dropdown, click one of the following forecast methods:
   • Average of actuals.
   • Actuals from last fiscal year (Note: You can modify the forecast duration and forecast method until the first time you save from the Settings  panel.)
   • Budget
5. If you choose Average of actuals, select the past actuals duration to be used to calculate the average from the Use actuals from  dropdown.
6. If you want to set rules (increase/decrease) at the account type level, add them in the Set rules section.
7. When you’re done, hit Next.
8. Click the edit icon to edit the name of your forecast, if needed.
9. When you’re done, select Save and close.
   
   

For more detailed guidance on creating a forecast, you can refer to this article: Create and manage forecasts.

You might also want to consider checking our  QuickBooks Live Expert, who can help streamline your financial accounts and records.

Feel free to tag us on this thread if you have additional questions or concerns.