What is Rolling Forecast?
Nexa Consultancy | Startup & Finance Glossary
A Rolling Forecast is a management tool that continuously updates a company's financial forecast by adding a new period (e.g., a month or a quarter) as the most recent period comes to a close. Unlike a static annual budget, a rolling forecast is always looking ahead for a consistent period, such as the next 12 or 18 months.
For Startups: In the fast-changing environment of a startup, a static annual budget can quickly become obsolete. A rolling forecast provides a much more dynamic and realistic view of the future, allowing founders to adapt their plans based on the latest actual results. It is a key tool for agile financial management and helps in maintaining an accurate view of the company's runway.
Example: At the end of March 2024, a company using a 12-month rolling forecast will drop March 2024 from the model and add March 2025, always maintaining a 12-month forward view.