Rolling forecasts are great for internal management reporting. However, what do you present to the board of directors? (Webinar Attendee Question)

Our Board is presented with the latest forecast when it meets each quarter as part of their overall financial package.

We do use it to present 3 and 5 year plans, but it does get modified if we feel it doesn't properly represent the business.

This is an evolving area. I have seen companies present the Budget for the first month/quarter after the budget is prepared (depending upon frequency of meetings iwth the Board) and then moving forward the forecasts are presented, sometimes with comparisons to the original budget and sometimes not, depending upon the company/BOD's expectations. The trend I see is that more and more companies are moving towards the rolling forecasting approach and even to perpetual forecasting such that there really isn't a true Budget, except in cases where compensation plans necessitate this and companies will designate a plan as the basis for these calculations (this could be a Budget in the strict sense or a forecast designated as the baseline).

We see more and more companies moving Beyond Budgeting. The use the rolling forecast with their Board, their bankers, and their management teams. For more see two CFO magazine cover stories from May 2011 "Let It Roll: Why More Companies are Abandoning Budgets in Favor of Rolling Forecasts" at

http://www.cfo.com/article.cfm/14570220

and the follow-up cover story from Sept. 2012 called "Freed from the Budget" at

http://www.cfo.com/article.cfm/14658946

Both articles are by Russ Banham. Additional resources are available at the Beyond Budgeting Round Table site at BBRT.org

We present our Plan [budget] in December each year, and further present quarterly [updated] forecasts to the board at their quarterly meetings.