The Role of Data Analysis in Financial Forecasting: Enhancing Accuracy and Decision-Making in Modern Financial Systems

Om Santosh Tanpure

Abstract: Financial Forecasting plays an important role in helping organisation to plan their future activities and manage financial decision. In these recent years, the use of the data analysis has increased because of large amount of financial data are now easily available. Instead of depending only on traditional methods or assumptions, many organizations are now using data- driven approaches to improve prediction accuracy. This study focusses on understand the how data analysis support financial forecasting and decision-making. For this purpose, both primary and secondary data was used. A questionnaire was conducted with 120 respondents including students and professionals who have basic knowledge of finance. In addition to this information was collected from research papers, articles and industry reports. The collected data was analysed using Microsoft Excel with the help of the simple technique such as percent analysis, trend analysis and basic correction of it. The results show that the use of data analysis helps in improving forecasting accuracy and reduces the chances of errors.it was also check the most users prefer simple tools like excel because of easy use of it while advanced methods like machine learning are still less commonly used. Many respondents also agreed that data analysis helps better financial decision-making in practical situations. Overall, this study show that adopting data analysis techniques can make financial forecasting easier and more useful and also there is still needed to improve user skill and awareness of new technologies so that more advanced tools can be used effectively and correctly in the future.

Keywords: Financial Forecasting, Data Analysis, Predictive Analytics, Statistical Techniques, Decision-Making, Financial Modeling, Excel Analysis