Traditional Culture Encyclopedia - Traditional stories - What are the advantages and disadvantages of the rolling budget method?
What are the advantages and disadvantages of the rolling budget method?
(1) can maintain the continuity of the budget, is conducive to the combination of the enterprise's near-term goals and long-term goals, consider the future of business activities;
(2) so that the budget with the advancement of time to be constantly adjusted and revised, can make the budget and the actual situation is more compatible, and is conducive to give full play to the role of the guidance and control of the budget.
Disadvantages of rolling budgets:
(1) The higher the frequency of rolling budgets, the higher the requirements for budget communication, the greater the workload of budgeting;
(2) The high frequency of rolling is likely to increase the management's sense of instability, resulting in budget executives at a loss.
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