M. Ing. / Undoubtedly, forecasting accuracy presents many advantages to a business, but the opposite is also true for forecasting inaccuracy. This paper is intended to outline the effects of forecasting accuracy on business planning while also investigating factors that affect it. The role of the human element in this regard is also discussed in the report. The study is qualitative in nature with an exploratory approach. A survey and focus group interviews / discussions were conducted so as to achieve the aim of the project. The information obtained from these two methods was used to explore the research questions which in turn were designed to identify the impact of forecasting accuracy and factors that affect this accuracy. The findings of the study indicate that the effect of forecasting accuracy is more significant than commonly perceived. The findings also outline the important factors affecting forecasting accuracy. The basis of this argument is that most of the factors that affect forecasting accuracy can be controlled and are centered on people. Therefore, in order for companies to survive, they must begin improving v their forecasting process and paying more attention to the human element of this process.