Can you explain the term rolling budgets?

A rolling budget is continually updated to add a new budget period as the most recent budget period is completed. Thus, the rolling budgetinvolves the incremental extension of the existing budget model. By doing so, a business always has a budget that extends one year into the future.

A rolling budget is also known as a continuous budget. Rolling budgets project a continual look into the future and are updated frequently, most often monthly.