Advantages of Rolling Forecasting

Rolling forecasting a better understanding of how decisions and changing circumstances affect the future, extending beyond the current fiscal year. By maintaining updated forecasts that span different time horizons, such as 12 months, 18 months, or “current year + next year,” businesses can make more informed decisions that look beyond the current fiscal year. When implementing rolling forecasting, it is essential to ensure that the organization can adjust its planning horizon accordingly.

Why Rolling Forecasting?

Rolling forecasting enables better decision-making by continuously updating forecasts that extend into the next year, facilitating more informed and accurate decisions. Additionally, rolling forecasts promote a forward-looking perspective and improve efficiency in resource planning, allowing businesses to allocate resources to the areas that create the most value. Furthermore, rolling forecasting reduces workload over time, as there is no need to create a new annual budget from scratch; the forecast is always up to date.

Key Considerations for Implementation

Despite the many advantages of rolling forecasting, there are some aspects that should be considered. Continuously updating the rolling forecasts can, for example, be time-consuming and require companies to have a system that can automate the data collection and processing from various sources. It also requires a system that is adaptable and flexible to support different scenarios as well as integrations with other systems. Rolling prognostication requires advanced, integrated and user-friendly systems that can handle large amounts of data, automate processes and enable in-depth analyses.