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Rolling Planning & Forecasting

Until a few years ago, the planning process was relatively static. In the autumn of each year or even earlier in some cases, companies started to prepare the budget for the following year, sometimes combined with multi-year planning. This may have been appropriate in times of a stable economy, but it no longer meets the needs of modern corporate governance and business management. After completion of the financial statements in the spring of the following year, the company compared the results with the budget and prepared a target/actual deviation analysis. Differences between the budget and the actual figures were therefore only recognized very late on an annual basis, if the budget was not broken down to levels during the year such as months or quarters.

Companies therefore adopted two fundamental measures to optimize planning. On the one hand, forecasting was introduced. A forecast of the result of the current quarterly and/or annual budget amount is prepared on the basis of the actual figures at a certain point in time during the year, past experience and current estimates of the parties involved. On the other hand, rolling planning was introduced. Budgeting does not take place once a year, but rather the twelve-month budget is usually prepared on a rolling basis quarterly for the next twelve months. In particular, this eliminates the need for a time-consuming annual planning process.

Introduction of Rolling Planning or Forecasting

Our services in the area of rolling planning/forecasting are particularly relevant for you in the following situations:

  • You do not have, during the year, a clear view of the expected results at the end of the year
  • There are often unexpected surprises with regard to the actual annual results during the preparation of the annual financial statements
  • Your environment is very volatile, and you need to react flexibly to rapid changes
  • The organization is very tense due to the annual budgeting process
  • You want to have an understanding of the future results not only at the end of the year, but also for future years

We Will Support You in the Introduction of Rolling Planning or Forecasting

Our services in the area of rolling planning/forecasting include in particular:

  • Analysis of existing budgeting and planning processes with regard to potential for rolling planning and/or forecasting
  • Design of rolling planning and/or forecasting
  • Support in software selection for rolling planning and/or forecasting
  • Implementation of rolling planning and/or forecasting, if necessary with the corresponding software

If you are interested or have any questions, please contact us.

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 Jürgen Diehm Partner
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 Nikolaus Färber Partner