Annual budgets quickly lose their accuracy and relevance as the fiscal year progresses. A rolling forecast is a tool many companies have implemented to maintain an accurate financial picture of the future and to continuously promote strategic thinking. Some companies replace traditional budgets with rolling forecasts and other processes.

Rolling forecasts provide:

  • Better readiness for a changing business environment
  • Improved cash flow planning
  • More meaningful variance reporting

The best practice use of rolling forecasts begins by clarifying the roles of budgets and forecasts. Specifically, forecast accuracy is increased by separating it from performance management and compensation processes. This improves forecast accuracy.

The efficiency needed to perform forecasts throughout the year is achieved through driver-based forecasting. You'll learn how to build these forecasts. Eliminating traditional budgeting also frees up resources for rolling forecasts.

The course then explains how to implement rolling forecasts. You'll learn the key implementation decisions and steps. I'll show sample reports and how to build them. Rolling forecasts can be built via spreadsheets can be built with spreadsheets, business intelligence (BI) software, or forecasting software. We'll look at the pros and cons of each.

Rolling forecasts have many benefits, but they won't solve all your problems. They may create some new challenges for you. I'll list some challenges you may face and ideas to mitigate them.

Course Key Concepts: Rolling forecasts, Beyond budgeting, Budgeting, Forecasting, Financial planning and analysis.

NOTE: This course is also available in Text Based format:
Rolling Forecasts (Text Based Course)

Learning Objectives
  • Recognize the benefits and challenges of rolling forecasts.
  • Explore and recall how to build a driver-based forecast.
  • Identify the steps for building rolling forecasts.
Last updated/reviewed: June 27, 2024
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Why Rolling Forecasts8:22
  Ranges of Implementation6:16
  Budgets vs Forecasts6:04
  Performance Management9:08
  Driver-Based Forecasting15:40
  REVIEW QUESTIONS: Driver-Based Forecastingquiz
THE ROLLING FORECAST PROCESS
  Implementing Rolling Forecasts19:02
  Reporting8:56
  Tools To Use11:26
  Challenges of Rolling Forecasts4:52
  Key Takeaways10:34
  REVIEW QUESTIONS: Key Takeawaysquiz
CONTINUOUS PLAY
  Rolling Forecasts1:40:20
SUPPORTING MATERIAL
  Slides: Rolling ForecastsPDF
  Rolling Forecasts GlossaryPDF
REVIEW AND TEST
 FINAL EXAMexam