A Rolling Business and Cash Flow forecast is an ongoing blueprint that numerically and financially describes the business model that you have and what that business model will look like in the future, all supported by a solid set of assumptions.  Rolling forecast capability allows you to enter actual results for the most recent month and then the rest of the forecast rolls forward for the next 12 months. This is called a 12 month rolling forecast and should be done every month to keep the forecast current. 

Having a rolling cash flow forecast is important because we just don’t prepare a forecast and throw it in the drawer. We use it as an ongoing blueprint. When the actual results for a month or a quarter are realized we plug the actual results into the forecast and let it roll forward throughout the remainder of the forecast and see what changes. 

The many benefits of forecasting include:

• Revealing weaknesses and strengths in the organization
• Finding solutions to solve those weaknesses and improve on strengths 
• Helping the business owner learn more about their business
• Making people accountable in the organization 
• Giving the business owner peace of mind

With tools like the rolling forecast, the business owner can be on top of their game and gain a competitive advantage against the many business owners who do not do so!