Rolling Budget
A rolling budget is a dynamic financial planning approach where the budget is continuously updated by adding a new period (e.g., month or quarter) as the current one expires, maintaining a constant time horizon. It allows organizations to adapt to changing conditions, incorporate actual performance data, and revise forecasts regularly. This method contrasts with static annual budgets by providing ongoing flexibility and alignment with strategic goals.
Developers should learn rolling budgets when working in agile or fast-paced environments, such as tech startups or project-based teams, to manage resources effectively and respond to market shifts. It is particularly useful for financial planning in software development, where project scopes and timelines often change, enabling better cost control and forecasting accuracy. This skill helps in roles involving project management, financial analysis, or operational planning within tech companies.