I should begin by advising that many companies usually have different takes on how do the measure or analyze their budgeting and forecasting, and in my usual vein I start of with my usual advice on the fact that they typically need both a budget and a forecast to manage your company. They all have different purposes. In the budgeting process, many executives focus almost exclusively on the income statement. Usually Revenues are the primary concern, as if increased revenues will solve all the issues so Management decisions that affect the balance sheet accounts can have a greater impact on the company than revenue increases.
The Rolling forecast takes the initial 36 month forecast and updates the projections at the end of each quarter. In the end I usually show them what I have in my mind which is what I have attached below.
I have attached a chart that we used which pits Actual vs budget Vs forecast which we used to often analyze our performance