Posted by John O'Rourke
Well, the first quarter of 2016 is behind us. Is your 2016 annual budget already obsolete? Probably – and why? Because “stuff happens” and conditions can change quickly in business. That makes it nearly impossible to accurately predict revenues and costs quarters, or even months in advance.
The annual budget has long been the go-to practice of businesses, but it unfortunately presents a lot of disadvantages, particularly for dynamic businesses that need to be able to alter the budget on a whim.
Rolling forecasts can provide a more versatile addition or alternative to annual budgets, enabling businesses to respond quickly to change.