What Is Rolling Forecasting? Benefits, Implementation Steps, and Best Practices

This article has been updated on: 30th July 2026

By definition, forecasting is the process of predicting or evaluating future events, trends, and outcomes. For business prospects, simply guessing what the future might hold is very risky and not appropriate for most. That’s how annual budgeting plans came to be. Although even with the best data and tools, the business climate is very unpredictable and ever-changing.

To fight budget uncertainty, rolling forecasts are here to save the day.

Read more:What Does the Future Hold for Financial Forecasting?

What is rolling forecasting?

Rolling forecasting is a dynamic approach to financial planning and reporting. It allows companies to adapt their budgeting plans based on actual results in real time. In the words of Paul Saffo, Silicon Valley technology forecaster, “the goal of forecasting is not to predict the future, but to tell you what you need to know to take meaningful action in the present.” Rolling forecast versatility enables management to act when needed.

The popularity of this method soared after the 2008 financial crisis, when many companies dropped annual budgeting in favour of rolling forecasts. Today, it is estimated that around 60% of top-performing companies use it, at least as an addition to the annual budgeting process, if not exclusively. Fortune 500 corporations such as Southwest Airlines (the world’s largest low-cost carrier) and Equinor (the 9th-largest oil company in the world) use rolling forecasts for budgeting.

Read more: Understanding 5 Most Common Budgeting Approaches and Their Pros & Cons

Benefits of rolling forecasts: Why use it in the first place?

The simple answer is to navigate through turbulent times and changing business conditions. The current pandemic with its new health guidelines is the perfect example. This sudden shift in the markets affected operating income, expenses, overheads, investments, and annual plans, rendering them obsolete very early in the year. To make matters even worse, it is still hard to predict the situation for the upcoming months.

Companies that implement a rolling forecast outperform competitors. IBM conducted research focusing on companies using rolling forecasts, and data shows:

• 14% increase in forecast accuracy 
• 33% decrease in preparation time 
• 50% improvement in revenue  
• 300% improvement in productivity 

From more accurate planning, better risk management to increased efficiency, rolling forecast gives the decision-makers the power to steer organisations towards a more desirable future. It is a consistent evaluation of data coming from the day to day life of the organisation, which (if used right) can help improve organisational performance in the future.

Read more: Oil Shock Spreads Through Fertilisers, Food, and Manufacturing. What’s Next?

How do rolling forecasts work and how are they different from regular budgeting?

Rolling forecasting offers a more agile alternative to traditional budgeting. Instead of creating a fixed plan for the entire year (e.g., the 2026 fiscal year or Q3/2026), organisations continuously update their forecasts using actual performance data and evolving business assumptions.

For example, if the annual resources plan is set for this year, in August, eight months have already passed, with four more months remaining until the end of 2026, and then it stops. On the other hand, a rolling 12-month forecast will be updated through September of 2027, always providing an outlook for the next 12 months, no matter the month or quarter. The idea is that with each passing month, the new one will be added, and the forecast is always rolling forward.

At its core, a rolling forecast maintains a constant forward-looking horizon, typically 12 to 18 months. As each period ends, actual results replace previous estimates, and a new future period is added. This ensures that the forecast always reflects the most current view of the business.

This approach directly addresses the limitations of annual budgeting. Despite the availability of modern tools, 96% of FP&A professionals still rely on spreadsheets, which often reinforce static, backwards-looking planning [1]. At the same time, 49% of CFOs report that poor data quality limits effective decision-making, further highlighting the need for continuously updated forecasts [2].

Rolling forecasting also improves visibility and decision-making. With regularly updated data, leaders can identify trends earlier, evaluate risks more effectively, and take proactive action. This shifts finance from a reactive function to a forward-looking strategic partner.

Additionally, for APAC organisations, where market conditions can change rapidly across different countries and sectors, this level of agility is especially critical. Rolling forecasts enable finance leaders to stay aligned with business realities, improve forecast accuracy, and support more confident, timely decisions.

Read more:Budgeting Takes Too Long? Vital Signs You Need A Dedicated Solution

How to create a rolling forecast

The type of forecast can vary based on the type of business, the size of operations, the model, etc. In general, there are a few universal rules to follow for successful implementation.

1. Define the goals

The objective of the rolling forecast must be explicitly defined. What should be the intention for the rolling forecast? Why is the organisation executing it? Will the Rolling Forecast replace the annual budget method or work alongside it? These questions must be answered, and understanding must be reached within the company.

Also, the forecast itself should not be confused for the business target, because while the target is more of an aspiration, the forecast is an exposition of future direction based on the actual data.

Read more:Kempinski Hotels financial forecast case study

2. Define the time window

It is essential to consider how long the rolling forecast time window should be. Weeks, months or even years ahead? If it is too long, while it may render more useful long-term insights, it will be less accurate and precise, because a lot can change in that time frame.

Also, an important consideration is how often rolling forecasts should be refreshed. Will it be on a weekly, monthly, quarterly or yearly basis? It is highly dependent on the organisation, as some smaller companies with limited human resources can be fine with monthly or quarterly updated forecasts. At the same time, some corporations could require greater granularity with weekly updates.

Read more:What Is EPM? A Complete Guide to Financial Planning, Budgeting, and Forecasting

3. Define the level of details

Similar to the point before, it depends on the business how detailed the estimate must be. Suppose the company can make decisions about general operational finances, such as sales and product pricing. In that case, the collection of extreme details may be counterproductive, as more time is spent on data compilation and processing than on analysis and relevant conclusions.

Although the size of the data pool may not always need to be large, the level of accuracy must be high by any means. Decisions based on incorrect data can be devastating for a business of any size.

4. Define the drives

Tracking every performance metric of the organisation for the rolling forecast may be unnecessary. It is essential to identify the organisation’s value drivers and break them down. What is going to make a difference in the grand scope of things, such as market share, overall growth, talent acquisition, sales and others? The recent increase in market share can influence the budget for the upcoming months more than the last monthly invoice for office supplies.

The same applies to tracking and calculating just profits and expenses. Does it tell the whole story? For instance, a manufacturer may be able to control the yearly revenue as much as it can control the price of its products, the contribution margin, or the number of units produced. Find what is essential for organisational success, as that is the driver of value, and focus on it.

5. Define possible scenarios

The benefit of rolling forecasts is that they can be built around different business scenarios, enabling “what-if” analysis. The key is to be prepared for both a positive trend and a negative one. Even if actual results end up somewhere in between, it was expected to some degree.

Scenarios may include market decline, increased taxation, or a global crisis. Being prepared for these scenarios can make a difference in how useful the rolling forecast is for the company. Forecast for the best, forecast for the worst, and be unsurprised by anything in between.

6. Evaluation of results

When the latest results are in, variance analysis shows how precise the estimate was. It is an analysis of the difference between the plan and the reality. Reflection on the stats and understanding why there is a percentage difference can help improve predictions of future outcomes and make forecasting even more realistic. After all, reliable forecasts bring a sense of stability in ever-uncertain business life.

The rise of rolling forecasting in APAC

APAC is often viewed as one of the most dynamic and unpredictable business environments. Rapid economic shifts, fluctuating currencies, evolving regulations, and changing consumer behaviour make it increasingly difficult for finance leaders to rely on static, once-a-year financial plans.

This volatility is further amplified by structural challenges such as climate risk. The region is estimated to require over USD 422 billion by 2030 for climate mitigation and adaptation, yet current financial flows remain at only around USD 6 billion annually, highlighting the scale of uncertainty and transformation businesses must navigate [3].

Yet, many organisations still depend on traditional annual budgeting. Typically built in the final quarter of the year, these budgets are based on assumptions that can quickly become outdated. By the time the new fiscal year begins, market conditions may have already changed, leaving finance teams working with numbers that no longer reflect reality.

Beyond this, the process itself is often inefficient. Spreadsheet-driven workflows, long email approval chains, and disconnected data sources slow down collaboration and reduce visibility. Multiple versions of the same file create confusion, while manual updates increase the risk of errors.

As a result, finance teams are forced into a reactive mode. Instead of guiding strategy, they spend time reconciling data and explaining variances between actual performance and outdated plans.

Today, APAC finance leaders are expected to play a more strategic role. They need to deliver real-time insights, support faster decision-making, and align financial planning with constantly changing business conditions. Rolling forecasting has emerged as a modern solution, enabling companies to continuously refine their financial outlook and make better-informed decisions.

Read more:Solving 5 Core Finance Challenges in APAC Education with Automation & Cloud Solutions

How Infor EPM supports rolling forecasting

While the benefits of rolling forecasting are clear, many businesses still struggle to implement it using traditional tools. Spreadsheet-based processes are not designed for continuous updates, real-time collaboration, or integrated data management. Infor Enterprise Performance Management (EPM) provides the foundation needed to enable effective rolling forecasting.

First, it integrates financial and operational data into a single, unified platform. This creates a single source of truth, ensuring that all stakeholders work with consistent, up-to-date information. Changes made in one area are reflected across the system in real time, eliminating version control issues.

Second, Infor EPM supports continuous planning by allowing finance teams to update forecasts regularly and extend planning horizons with ease. Instead of rebuilding models from scratch, teams can adjust assumptions, incorporate actuals, and maintain a rolling view of future performance.

In addition, organisations using Infor EPM have reported 20% improvements in financial process productivity and up to 30 times faster processing times for financial model calculations [4], significantly reducing the time required for planning cycles and enabling more agile decision-making. Advanced analytics and scenario modelling capabilities enable organisations to run what-if analyses and evaluate different business scenarios. Whether responding to demand fluctuations, cost changes, or external disruptions, finance leaders can quickly assess potential impacts and make informed decisions.

Interactive dashboards further enhance visibility by providing real-time insights into key performance indicators. This reduces reliance on manual reporting and allows decision-makers to focus on strategy rather than data preparation.

Finally, Infor EPM improves collaboration across departments by aligning finance with operations and leadership teams. With clear workflows and centralised data, organisations can streamline the planning process and ensure accountability.

With the support of solutions like Infor EPM, finance teams can move beyond spreadsheets and transform planning into a strategic capability. By embracing continuous forecasting, APAC organisations can improve agility, enhance decision-making, and build a more resilient, future-ready finance function.

To learn more about this robust enterprise perfomance management solution, download Infor EPM brochure today!