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 2022 annual budget will become a rolling budget if in February 2022 it adds the budget for January 2023 to replace the January 2022 budget. At that point the rolling budget will cover February 1, 2022 through January 31, 2023. After February 2022 occurs, the rolling budget will consist of the 12 monthly budgets of March 1, 2022 through February 28, 2023.
The rolling budget is also referred to as a rolling horizon budget, a continuous budget, or a perpetual budget.