An interesting trend in budgeting allows for more flexibility in our rapidly changing economic environment, but it also creates a more cohesive organization. Imagine how well an organization could operate if various divisions didn’t feel compelled to artificially inflate budgets, think of other divisions as competition and “use it or lose it” while locked-in to an annual budget that may not address new market conditions. The rolling budget is evaluated and updated as necessary throughout the year, always looking at the next 12-15 month future period. Read the Journal of Accountancy article here.
October 4, 2013