In a recent webinar entitled "Ask the Expert: Building a Better Way to Budget," Steve Player, the Program Director at Beyond Budgeting Round Table, reflected on this question.
Understanding the Budget Process
The key to operating an efficient budget process is by ensuring every team member is well-versed in their role and has strong comprehension of the
Predicting the future in business is tough, and rolling forecasts are becoming a popular way to address this, particularly in industries that are more dynamic and volatile. Yet, while a rolling forecast will improve the accuracy of your planning, there are specific tactics that can optimize your results and ensure precision. Here are some of the main factors that will influence the success of your rolling
While static budgets continue to be the predominant choice among businesses, rolling forecasts provide a number of advantages that make them ideal for many companies. The ideal budgeting approach largely depends on your business model. The size, growth-rate, and industry fluctuations of your business can help you determine the ideal budgeting method for your company.
What Is a Static Budget?
With the right budgeting approach, you can
Yet, while financial forecasting is imperative to the success of businesses, accurate financial forecasts are difficult to create. So, how does a high-growth, dynamic business create accurate forecasts for their company, without exhausting their time and resources in the process? A whitepaper entitled, "Best Practices in Rolling Forecasts," sets out to answer these very questions.
Why are Rolling Forecasts so Important?
Rolling forecasts provide the agility
Static budgets rely on set periods, a fiscal year for example, and create a fixed forecast for that period. Rolling forecasts, as an extension to financial budgeting, support periodic updating of budget assumptions, and extend the time period out beyond the end of the fiscal year. By continously forecasting out 4 - 6 quarters, you can avoid the "fiscal year cliff" and give your organization a head start on next year's