Why traditional budgeting can't cope with re-forecasts

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Many organisations want to streamline their budgeting process; some want to eliminate it completely. Regardless of what the endgame might be, producing more frequent re-forecasts is typically part of the solution. Richard Barrett of ALG offers some advice.

The word that inevitably crops up whenever more frequent re-forecasting is discussed is "rolling", and many organisations use some form of re-forecasting today. For the most part this is either budget contributors making rough estimates of revenues and expenses in the out years ("Budget Year +1", "Budget Year +2" etc), or a senior member of the finance team re-forecasting summary revenues and expenses for the months to go until year end, based on year-to-date variances against budget.

While this type...

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