The 10 benefits of the quarterly rolling forecasting process

By David Parmenter

The benefits include:

Macro view

  1. Rolling forecasts allow for more accurate and versatile forecasting that will remain true to a company, even amid fluctuations in the industry, economy, or marketplace.

2. Businesses can continually adapt future forecasts to reflect industry, economic, and business changes, enabling them to reduce risk and allocate resources more optimally in pursuit of their financial objectives

3. Businesses can be more opportunistic in their decision-making because they’ll have the ability to tweak their business assumptions, alter budget allocations, and adjust their spending more quickly, enabling them to better respond to industry and consumer demands.

Micro view

4. The funding of budget holders is now done on a quarterly rolling basis, once their forecast has been approved, rather than annually.

5. Monthly budgets to be used for month-end reporting are set only one quarter ahead.

6. Managers have a better understanding of their operations

7. An updated annual forecast P/L as a by-product, every quarter, and not a separate monthly exercise as part of the financial report

8. The next financial year is always in view

9. Because forecasting is done 4 times a year at a higher level(less detail), there is a significant saving in time and cost.

10. Helps create a better understanding of the cost drivers leading to full recovery of raw material cost fluctuations.

For more details access my toolkit that currently is on sale:

These benefits are discussed in great length in the ‘How to Implement Quarterly Rolling Forecasting and Quarterly Rolling Planning – and get it right first time Toolkit’ (Whitepaper + e-templates)

You can have a look inside the toolkit

Also read:

8 steps to implementing rolling forecasts