Course Outline
Join PRO

What is a rolling budget?

Author:
Harold Averkamp, CPA, MBA

Definition of Rolling Budget

A rolling budget often refers to a company’s operating budget which presents the future monthly budgets for the next 12 months. A rolling budget is also known as a continuous budget, perpetual budget, or rolling horizon budget.

Examples of a Rolling Budget

Assume that a company’s accounting year ends on each December 31. Prior to the start of the year 2025, the company prepares its annual budget which is detailed by month for January through December 2025. This budget could become a rolling budget if after January 2025 the company drops the budget for January 2025 and adds the budget for January 2026. This rolling budget now covers the 12 months from February 1, 2025 through January 31, 2026. At the end of February 2025, the rolling budget will drop February 2025 and will add February 2026. At this point the rolling budget will cover the 12 months of March 2025 through February 2026.

The benefit of a rolling budget is that the company’s management will always have a budget that looks forward for one full year.

A rolling budget could use 3-month periods or quarters instead of months. In addition, a company may have a 5-year rolling budget for capital expenditures. In this case a full year will be added to replace the year that has just ended. This 5-year rolling budget means that management will always have a forward looking 5-year capital expenditures plan.

Join PRO to Track Progress

Features

Free

PRO

Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Dictionary
Bookkeeping Video Training
Financial Statements Video Training
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Flashcards
Crossword Puzzles
Word Scrambles with Coaching
Bookkeeping Study Guide
Managerial and Cost Accounting Study Guide
Certificates of Achievement
Bookkeeping Certificate of Excellence
Business Forms
Printable PDF Files
Progress Tracking
Motivational Badges and Points
Motivational Medal Rankings
Motivational Activity Streaks
Public Profile Page of Achievements

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Read 3,033 Testimonials

PRO for Teams
  • Easily onboard new users and team admins
  • Monitor individual user progress and grades
  • Monitor team progress and compare users
  • View average grades and find problem areas
  • Monitor recent activity and user achievements
PRO for Teams
Take the Tour Join Pro Upgrade to Pro