Rolling budget
Rolling budget extends the plan by one period each time the nearest period closes, so the firm always has, say, 12 months of budget ahead. Also called a continuous budget, it keeps forecasts current but requires regular re-planning.
FrameworkBudgeting
See it move
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A rolling budget keeps a constant twelve-month horizon. When Q1 closes, it drops off the back of the plan; Q2 through Q4 remain in the window; and a new Q5 is appended at the far end. Each quarter the cycle repeats, so management always sees twelve months ahead rather than watching the formal horizon shrink toward year end.
Where it fits
SubjectManagerial AccountingAdvancedTopicBudgeting & the Master BudgetAdvanced
Check yourself
PracticeCORE
A firm maintains a 12-month rolling budget. When the quarter ending 31 March closes, the firm's correct next action is to:
Select an answer to check your understanding.