They are completing the last preparations and making growth plans for
the new year. Most are looking to review their budgets every month in
order to incorporate risks that cannot be predicted ^Within this
context, they prefer to use the “rolling forecast budget” method for
Companies with “cautious” plans for 2014 are adopting
dynamic budgeting systems and indicating that they will exercise
greater control in the new year. It is striking that the majority are
still looking to double digit growth next year...
CONTINUALLY ADJUSTED BUDGETS
Rolling forecast budgets generally allow companies to review their
budgets at the beginning of each quarter. As a result, they are able to
continually adjust their budgets according to changing business
Experts say that this kind of budgeting encourages companies
to plan and pursue opportunities continuously rather than once a year.
Some companies make 12-, 15- or even 18- month rolling forecasts. In
some companies, these forecasts are revised every month.
Doğtaş is one
of the companies that will use this budgeting method. Doğtaş Board Chair
Davut Doğan says that the rolling forecast method will enable them to
revise their budgets and targets and keep them updated.
Dimes General Manager Ozan Diren says: “The first thing that we do
before every financial year is to make a master budget for our operating
plan. The rapidly changing structure of the sector means that the
master budget that has been prepared is revised every month according to
new forecasts that have been formulated in accordance with market
conditions, competition, season factors and what has happened in the
previous period. In brief, we prepare a rolling forecast budget.”