Question

What is re-forecasting, and how is it (or could it be) used in the budgeting process in your organization?

How is re-forecasting similar to (and different from) continuous budgeting or rolling budgets?

Answer 1

Re-forecasting is the process to revise the said expectations.Reforecasting enables users to model one or more multiple assumption changes, with the impact being applied from a chosen point in time.

Reforecasting is a vital part of the budgeting and planning process.Reforecasting gives the ability to adjust all the projected expenses , revenues overall anticipated bottom line based on incoming actuals.

Continuous budgeting is the process of preparing budgets for future periods, revising them during current periods, and adjusting them at the end of the period. It is similar to Reforecasting.

And the key difference between both is -The Recforecasting is updated at regular intervals, perhaps monthly or quarterly while The continuous budgeting may only be updated once a year, depending on how frequently senior management wants to revise information.