Rolling budgets
You'll learn what rolling budgets are and why they're essential for managing uncertainty in your business. This lesson covers the core principle: continuously updating your budget by adding a new quarter as the earliest one finishes, always maintaining a 12-month forward view.
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In this lesson
- 0:00 Rolling budgets: continuous 12-month forecasting
- 0:49 When to use rolling budgets in practice
- 2:12 Benefits and drawbacks of rolling budgets
- 3:12 Common exam mistakes and implementation
- 4:51 Analysing rolling budget data correctly
About this lesson
You'll explore when to use rolling budgets—particularly during times of rapid change or when cash flow forecasting is critical—and understand both the benefits (more realistic forecasts, fairer manager appraisals) and drawbacks (time-intensive, potentially demotivating if poorly communicated). This technique is particularly relevant for APM and management accounting papers, where you may be asked to prepare rolling budgets or analyse their impact on financial planning.
Duration: 5m
Transcript
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