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A rolling budget is a type of budget that is continuously updated on a regular basis, typically every month or quarter. It extends the budget period by one month or quarter every time that period passes, ensuring that the budget always covers the same length of time into the future.
In detail, a rolling budget is adjusted regularly to reflect actual expenses and revenues, allowing for more accurate and current projections. This approach allows a business to adapt its budget based on changes in business conditions or strategic goals. While it requires more effort to maintain than a static budget, a rolling budget can help a startup stay agile, keep financial goals in focus, and respond effectively to changes in the business environment.
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