AMAIZING OFFER GET 25% OFF YOUR FIRST ORDER CODE FIRST25
Need a response to the following discussion post.. From Shaquille
The similarities between a classical budgetary process and a rolling forecast process are that they are both budgeting strategies used throughout organizations to manage finances. A classical budgetary process, also known as a traditional budget, is prepared yearly by the organization. The conventional budget’s significant disadvantages are that it usually takes longer, costs more, and is fixed and inflexible (Wolf, 2019). A rolling forecast process is a continuous process that projects the future based on historical performance data and usually only involves minimum tweaking. Versus the traditional budgetary process, the rolling budget can roll forward instead of static. Granting the stakeholders applied more flexibility; however, there must be adequate planning and preparation for the rolling budget. The key players involved in the budgeting process are managers, executives, and members of the finance department. The manager’s role is to communicate budgeting information for their designated department or unit to their manager or supervisor, who then communicates with the executives (CEO, CNO, CFO, etc.). As organizations move more towards reducing costs and increasing efficiency, using a classical budgetary process is slowly fading away as the rolling forecast process promotes adaptive performance that is easier to manage.
Wolf, K. (2019, June 24). Why it’s time to say goodbye to traditional budgeting. Online Business & Corporate Training Seminars, Classes, and Courses | AMA. https://www.amanet.org/articles/why-it-s-time-to-say-goodbye-to-traditional-budgeting/