This article focuses on the operational budget’s enhancements for the rolling forecast process and shows 7 possible benefits.
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.
Two years ago, the company moved away from our annual budget and monthly variance reports, and adopted quarterly rolling forecasts supported by key performance indicators and scorecards. Is this approach useful to a line manager?
The Copenhagen FP&A Board took place on the 29th of October to debate the key factors for successful Rolling Forecast implementation.
Today’s FP&A practitioners are highly trained professionals with a greater ability to see the big picture, analyse and interpret data, and build predictive models. They are also experts in harnessing the power of information technology. They are able to create detailed cost and revenue data bases which unlock patterns and trends in business behaviour, and to build sophisticated and responsive forecasting models. We do rolling forecasts because we know they are better, and because we can.