Rolling budget query

gingervickigingervicki Feels At HomePosts: 87Registered
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

Comments

  • Chris023Chris023 Feels At Home Posts: 93Registered
    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.
  • gingervickigingervicki Feels At Home Posts: 87Registered
    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
  • Chris023Chris023 Feels At Home Posts: 93Registered
    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.
  • gingervickigingervicki Feels At Home Posts: 87Registered
    ah ok, same principal but shorter timescales - brilliant

    thanks
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