Forecast Accuracy
Definition
The ratio of actual financial results to forecast results for a completed period, expressed as a percentage. Forecast accuracy is a trailing measure used to assess the reliability of the forecasting methodology, not a measure of management performance. Under the FFI Standard, the company must maintain a forecast accuracy record for each completed period showing actual results against the forecast prepared for that period at least one month in advance.
Common Misapplication
The most common misapplication is measuring forecast accuracy against forecasts revised in the final week of the period. A forecast revised immediately before close reflects information available near the period end, not the quality of the forecasting methodology established at the beginning of the period. The operative benchmark is the forecast prepared at least one month in advance.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.1: The Forecasting Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Forecast Accuracy. https://ffistandard.org/glossary/forecast-accuracy/. 2026.