Rolling Forecasting Is Important To Achieve Your Budgeted Results
Your business has achieved 3 months of Actual performance. In accounting, we call this Year-To-Date or YTD Results.
Then you do a 9-month Forecasted Results, in accounting we call this Year-To-Go or YTG Results.
So in short, YTD + YTG = expected Full Year results, or we call this Rolling Forecasting.
If YTD is under-achieved, then YTG has to stretch a little, in order to achieve Full Year’s budgeted results.
Hence, it is important to always have a good feel of your YTD, in order to know how much you need YTG.
Timely accounts processing is important to let you have a good feel of your YTD, and timely tweak of your Actions forward will be important to achieve your YTG!