Rolling Forecasts – Cash Focus

Rolling forecasts in budget

With a rolling forecast when a forecast period gets actual data that period moves out of the forecast and another period is added to the end of the forecast. The total number of periods in the forecast remain unchanged. You enter actuals for each period of the rolling forecasts after the rollover. Then the software management performance reports monitor actuals versus budget and forecast. The report compares actual trading results to the budget and forecast predictions for the period. Actuals vs budget are displayed including the variances. Hence differences between trading data and predictions for any given period in the rolling forecast are easily detected. Actuals can be compared to current, year-to-date and full year budget. Variances between relevant amounts are also shown.

Report actuals vs budget with variances. Compare actuals to current, year-to-date and full year budget and report variances.

Reports include actuals versus budget, variance as an amount and percentage and calculation of expected outcome based on the actuals to-date.

The software calculates the cash flow from the balance sheet and profit and loss for the budget as well as actuals. Hence the built in rolling forecasts include “actual cash flows” too.

Rolling forecast benefits

Rolling forecasts in Visual Cash Focus budget software eliminates the annual budget process. It also transforms month end reporting from a laborious manual chore to a quick and easy automated task.

When Actuals are entered the forecast automatically extends one period copying the data from the last forecast period. This data is then reviewed by management and adjusted accordingly.

If you’re rolling monthly, after 12 times the forecast is already extended by a year and a comprehensive review of the data has already occurred. Thus there is no need for another budget round.