What Is a Rolling Budget?

Rolling budget, also known as continuous budget or perpetual budget, refers to separating the budget period from the fiscal year when preparing the budget, continuously extending the supplementary budget as the budget is implemented, and rolling backwards one by one to keep the budget period always one A method of budgeting for a fixed period. According to the time unit of scrolling, it can be divided into monthly scrolling, seasonal scrolling and mixed scrolling.

Rolling budget

Right!

Rolling budget, also known as continuous budget or perpetual budget, refers to the

1. Maintain the integrity and continuity of the budget, and grasp the future of the enterprise from the dynamic budget.

2. It can enable managers at all levels to keep careful consideration and overall planning of production and operation activities in a certain period in the future, and ensure that the company's various tasks are carried out in an orderly manner.

3. As the budget can be continuously adjusted and revised over time, the budget can be more adapted to the actual situation, which is conducive to giving full play to the guiding and controlling role of the budget. Using a rolling budget approach,

This method is suitable for large-scale and long-term engineering or large-scale equipment procurement projects.

The original budget results are constantly revised, but this continuous update and modification is exactly what the rolling budget is to do, and it is also superior to the ordinary annual budget. This is because budgeting has two major functions, assessment and planning. As an assessment, it is normal to use the formal budget, but as an important tool for planning and resource allocation, the budget was formulated the previous year. By the time it is actually implemented, the situation may have changed. The original assumptions may no longer apply. With the latest forecasts to guide business decisions, rolling budgets do just that. However, rolling budgets are generally not used as updated assessment indicators to ensure that

Using rolling budgets to grasp the future of enterprises In order to facilitate the management of enterprises to grasp the future of enterprises, we advocate that a dynamic budget should be prepared. The reasons are as follows:

1. The rolling budget is in line with people's understanding.

The production and operation activities of enterprises are complex and changeable. When preparing the budget, although people have forecasted and analyzed various factors that affect the production and operation activities of the enterprise during the budget period, a certain consensus was formed. However, over time, it will produce various unexpected changes, which will undoubtedly affect the correctness of the budget and even cause some budgets to be out of date. Besides, people's understanding of future objective things also has a process from coarse to fine, from simple to concrete, and rolling budgets can help us overcome the blindness of budgets and avoid large discrepancies between budgets and actualities.

2. Rolling budgets help improve budget accuracy.

The budget period of a rolling budget has a dynamic fixed characteristic. It is said to have a fixed characteristic because the rolling budget must always maintain a fixed budget period, usually one year or a period longer than one year.

In our country, the form of budget management embodies more theory than theory. Although a lot of books on budget management have been published in recent years, few of them can really guide enterprises to use them. Budget monographs are still repeating the old path of planned economy and have not kept pace with the times. There is also some research on budget management in the domestic academic circles, but the theory is too strong, and there is not much integration with reality.

The book "Strategic Budget-Industrial Revolution in Management" is a product of the market economy, which fully combines the changing circumstances of the market economy and has a very strong guidance. The book "Strategic Budget-Industrial Revolution in Management" contains a strategic matrix, corporate culture, IE engineering, 6 Sigma, lean manufacturing, JIT, ERP, KPI, balanced scorecard, internal banking, financial management, financing decision, human resources Management, supply chain management, on-site management and other advanced management concepts are flawlessly integrated into the company's comprehensive budget management system, and through a relaxed and lively writing method, all readers can easily read and understand. The teaching style of "Straight Budget, Industrial Revolution in Management" emphasized by the readers is the straight line, the whole process case, and the systematic management style of teaching.

"Strategic Budget-Industrial Revolution in Management" is the most systematic and practical reading in the field of budget management in China.