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What Is the Difference Between a Budget & a Rolling Budget?

What Is the Difference Between a Budget & a Rolling Budget?

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Question added by Wilfredo Quito , Accounting Manager , DDC LAND INC.
Date Posted: 2016/09/01
Anil Lalwani
by Anil Lalwani , Chief Accountant , Al Ahli Hospital

Budget

Companies develop annual budgets based on their fiscal year. The process is arduous, often starting in the third or fourth quarter and continuing through the end of the fiscal year. The budget process generally includes multiple departments within the organization and goes through multiple versions. Once a budget is approved, it does not change for the remainder of the year.

Rolling Budget

Rolling budgets are updated frequently, most often monthly. For example, as August ends, the budget for August of the next 12-month period is added to the rolling budget. This type of planning eliminates the need to follow the historical annual budgeting process because the company always has a current budget at its disposal. In the event of a material change to revenue or expenses, the company can incorporate the change into the rolling budget.

 

Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

Budget is financial plan for a certain period while a rolling budget is a budget which always considers 12 month cycle as every month ends a new month is added back.

Tamer Elbeshbishy
by Tamer Elbeshbishy , Financial and Administration Manager , Muscat Towers Holding Group

Budget has many types. Rolling Budget is a type of budgets. That maintain a rolling period, 12 months for example, as a forecasting budget, so each month you still have 12 month budgeted months in your plan.

 

 

Ahmed mohsen
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

Budgeting is fundamental for businesses because a budget dictates what funds the company will have available to complete operations or pursue projects. Companies have two choices for how to approach their budgets: regular and rolling. These choices refer to budget term length, not the actual budget process such as zero-based or production-based.

A rolling budget is a specific budgeting approach in which you continually add a new budget period as one budget period finishes. This approach results in always having a full, 12-month budget for the company. 

Mohamed Azmy
by Mohamed Azmy , Chief Accountant , Grand Technology

  • budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
  • rolling budget is continually updated to add a new budget period as the most recent budget period is completed. Thus, the rolling budget involves the incremental extension of the existing budget model. By doing so, a business always has a budgetthat extends one year into the future

Ahmed Ezzat Mohamed Nasr
by Ahmed Ezzat Mohamed Nasr , Finance Director , M. Alriyadh Co. (Group of Co.)

Thank you for your kindness invitation.

I agree with all previous answers.

Regards

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thanks for invitation 

A budget is a quantified plan of action for a forthcoming accounting period. A budget can be set from the top down (imposed budget) it from the bottom up ( participatory) budget.

A rolling budget is a budget which is continuously updated  by adding a further period  ( a month or quarter) when the earlier accounting period has expired. Rolling budgets are an attempt to prepare targets and plans which are more realistic and certain,particularly with a regard to price levels, by shortening the period between preparing budgets.

Ahmed Mostafa
by Ahmed Mostafa , Manager, Forensics , KPMG ME

I'm agreed with the comments of our above colleagues

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

A rolling budget is continually updated to add a new budget period as the most recent budget period is completed. Thus, the rolling budget involves the incremental extension of the existing budget model. By doing so, a business always has a budget that extends one year into the future.

Saifullah Saifi
by Saifullah Saifi , Accountant , United Brothers Trader

Thanks for Invitation

A budget is a static projection of revenue and expenses in the future, generally a year, whereas a rolling budget projects a continual look into the future.

Ebrahim Abdo Farhan Ali
by Ebrahim Abdo Farhan Ali , General Accountant , Grand Motors Co. Ltd. - Agent of GMC, Chevrolet and Cadillac cars

A budget is a static projection of revenue and expenses in the future, generally a year, whereas a rolling budget projects a continual look into the future. Formal corporate budgets were introduced in the 1950s. The complexity varies from a small business budget as written on a notepad to large corporate and government budgets. As explained on the website Inc., the U.S. government budget commonly exceeds 1,000 pages in length

 

A rolling budget is continually updated to add a new budget period as the most recent budget period is completed. Thus, the rolling budget involves the incremental extension of the existing budget model. By doing so, a business always has a budget that extends one year into the future.

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