rolling budget definition
A rolling budget adds a future accounting period's budget to replace a budget for an accounting period that has past. For example, a company's 2018 annual budget will become a rolling budget if in February 2018 it adds the budget for January 2019 to replace the January 2018 budget. At that point the rolling budget will cover February 1, 2018 through January 31, 2019. After February 2018 occurs, the rolling budget will consist of the 12 monthly budgets of March 1, 2018 through February 28, 2019.
The rolling budget is also referred to as a rolling horizon budget, a continuous budget, or a perpetual budget.