We often hear organisations hail the move from traditional annual budgeting to rolling forecast as a great improvement. However what makes rolling forecast great? Is rolling forecast the answer to ease the pain of budgeting? This article explores what rolling forecast is, it’s pros and cons, some best practice times and if rolling forecast can ease the pain of budgeting.
A financial plan is a product used for guiding people’s actions toward the accumulation of wealth. As a product a financial plan is created from a variety of sources. One source used for creating a financial plan is accounting.
A rolling forecast is not only about seeing the future unravel, but a constant evaluation of the management team to see if they are able to adjust their operations on time. Without it, any form of strategic planning becomes useless. Below you find a real-life case. Step-by-step each question will be briefly discussed. It is about a foreign business unit, which was part of a large European corporation, on the brink of a crisis.
In this article, Steve Morlidge argues that the quality of business forecasting is unacceptably poor. He goes on to present six simple principles that will help executives significantly improve the performance of their forecast processes.
Statistical approaches to forecasting can provide a framework for creating rolling budgets to which analytical skills and judgment can be applied in supporting a sound budgeting process.
What are the key success factors for implementing an effective and efficient Zero-Based Budgeting (ZBB) process? The Singapore FP&A Board had a very interesting debate on the subject and the conclusions from the debate are reflected in this article.