Many businesses still rely on traditional budgets as planning tools for running their businesses, but is this the best way to go?
Rolling forecasts offer several advantages over budgets, including flexibility and a foundation for constant improvement in your business – here is a quick comparison between the two approaches.
Budgets and Rolling Forecasts – What’s the difference?
Budgets are the traditional planning tools that many businesses use to plan their activities over a specified period in multiples of months, quarters, biannual or annual. The budget is drawn up taking factors like cash flow, income, expenses, sales, and others into account, with each month’s projected figures being noted down. During the course of the year, the business strives to match or better the numbers in the budget, and if there is a shortfall, steps can be taken to correct this and return the business to its original strategic plan of action.
I specialised in strategic business planning, company valuations, analysis of financial statements and the design and implementation of business systems.
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