Rolling budget
A rolling budget maintains a specified future horizon by adding a new period as the earliest period expires. It updates assumptions and keeps attention on future activity beyond the financial year end. Frequent revisions can improve responsiveness but require resources and can destabilise performance targets if forecasts and commitments are confused. State the horizon and update frequency and preserve the original comparison where needed for accountability.
Worked example
A twelve-month budget is updated at March end by removing March and adding the following March, so managers still have twelve months of forward planning.
Common mistake
A budget revised occasionally is not necessarily rolling, and a rolling forecast does not automatically provide an appropriate reward target.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |