Overestimation and Underestimation of Financial Projections.

[Iboro]

Overestimation of financial projections can lead to unrealistic expectations and poor decision making. This can result in a company taking on too much risk, investing in projects that are not feasible, or overcommitting resources. On the other hand, underestimation can result in missed opportunities and a failure to secure adequate funding or resources.

Both overestimation and underestimation can negatively impact a company's reputation and financial stability. It's important for businesses to accurately assess their financial projections in order to make informed decisions and achieve their goals.

 

[Niyi]

I once did a business and overestimated the selling price. I had to pay the investor the difference between the price I sold and the price I estimated.

 

[Kane]

One of the major issues people find managing finances difficult, whether as a professional or personal finance, is because of over estimation and underestimation of financial projections. While under estimation might not create a lot of problems over estimation will always create problem in cashflow management.