Medium and large companies continue using the annual budget model, but have incorporated the practice of rolling forecast, which consists of continuous financial forecast revisions throughout the year. This combination allows maintaining traditional budget planning while offering greater flexibility for adjustments in response to changes in the business landscape.
The movement toward adopting rolling forecast is driven by factors such as exchange rate instability, international trade disputes, supply chains subject to disruptions, and the acceleration of artificial intelligence in corporate processes. These elements make frequent updating of financial projections necessary so that companies can respond appropriately to changes in the business environment.
A survey by the Association for Financial Professionals shows that 96% of FP&A professionals still rely on spreadsheets for budget planning, with 93% using these tools daily or weekly. This scenario reinforces the relevance of methodologies that allow constant updating of financial projections, even when based on traditional tools.
A study by McKinsey & Company identified that the main factor associated with the satisfaction of the consulted chief financial officers was precisely the use of updated forecasts, highlighting the importance of practices such as rolling forecast for financial decision-making in organizations.
