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