Rolling budget query

gingervicki

Hi

please can someone explain what a rolling budget is, what its purpose is/why would we use it, and any adv or diss adv to using it.

Thanks

Vicki

Chris023

From what I remember:-

Traditionally budgets are set on an annual basis, whereas rolling budgets are set for shorter periods of time and are continually updated, for example 3 months.

This means they tend to be based on what happened in the past and do not always encourage new ideas. However they enable the company to be more flexible and adapt to changing market conditions.

gingervicki

so do you mean in simpler terms...

budget set of 12 months then at 9 months they'll set it for another 12month and so on......so it dosent really have an end date as such or a start and stop.

does that make sense?

v

Chris023

A normal budget is set for 12 months.

Where I work they set the budget in early January for the year up to December

whereas a rolling budget could only be set for say January to March. then come late Feb or March, they can then set the following 3 months.

gingervicki

ah ok, same principal but shorter timescales - brilliant

thanks