 In this discussion, we will discuss the discussion question of Explain what a rolling budget is. So if you see a discussion question like this or an essay question is like this and we don't know exactly what the rolling budget is we could start off with just explaining what a normal budget is because obviously a rolling budget is First, a word from our sponsor Well, actually these are just items that we picked from the YouTube shopping affiliate program but that's actually good for you because these aren't things that were just given to us from some large corporation which we don't even use in exchange for us selling them to you these are things that we actually researched, purchased, and used ourselves Here we have a western digital WD elements 20TB USB 3.0 desktop external hard drive we use as part of our backup system noting that if you lower the number of terabytes of storage the price will lower dramatically as well when you're thinking about a backup system you usually think about an online system or an external hard drive system like this or ideally some combination between the two giving you some redundancy you can also work directly from an external hard drive like this but there are some drawbacks to doing that one being if you use this as your primary drive you're working from it's no longer a backup drive and you're going to need a backup system possibly another external hard drive and or some kind of cloud backup system and if you're working on something that takes up a lot of short-term memory a lot of RAM as you're working on it such as video editing the external hard drive can slow up the system so you might want to come up with some kind of system where you download the project you're working on to your computer to your C drive or possibly to a solid state drive which is a much more expensive external hard drive as you do the work once the work is done then save the project to an external hard drive such as this if you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com where we have many different courses you can purchase one at a time or have a subscription model giving you access to all the courses courses which are well organized have other resources like excel files and pdf files to download and no commercials a form of budget and therefore it would probably be achieving the same types of goals as a normal budget and then have some possibly some kind of twist to it so we could basically say you know the objectives of the budget what's the objective of the budget we want to have the future oriented type of budget the budget will help us to plan to the future the budget will help us to communicate to the organization the budget will help us with a roadmap to the future help us to give us a plan that we can use to implement and communicate for the future so the same kind of things that you would go through in terms of a normal budget our items that you could go through in terms of a rolling budget may still apply and could pick up points with regards to an essay question and obviously with a discussion question if you don't know exactly where to go on the rolling budget the fact that it is a budget means that it's got the characteristics of a budget and you could possibly pick up some points by going through those characteristics and not concentrating so much on the rolling part but rather on kind of a normal budget then you might want to compare and contrast between a normal type of budget and a rolling budget in other words a normal budget we would typically think having a set timeframe the set timeframe off usually being a year some type of year and then we might break that year budget out into quarters and then possibly those quarters into months and possibly smaller chunks from there that's going to be our normal kind of thought process when we think of the budget when we go through the full master budget type of process for typically thinking a year out now if we have a rolling type of budget that means that we're going to basically continuously update the budget for the time period that has passed in essence always looking out a year into the future and I always kind of think of it like if we're if we're driving through the fog or something and we got the headlights on on the car the headlights are always so many yards or whatever out in front that we can see and as the car moves forward the headlights move forward we can always see a fixed you know amount of time or amount of space in that case into the future when we look at the budget we're trying to do the same thing so we would like if we can have a continuous budget if we have a continuous 12 months looking forward and we always basically after a time period passes typically a month or a quarter we always update the budget then we can always have this 12 month time period that we're basically looking out into the future and there could be benefits of course to having that continuous 12 month time period so that we're always kind of planning out and we can have a matching 12 month basically period of course there's pros and cons to that type of budget you could go into the kind of pros and cons of it the standard budget it could be cheaper because we do the one budget one time we or we and we roll it out for the year and do comparisons on that the rolling budget of course means that we're going to have to update that that budget more often and and plan it out in that fashion as well but it could provide more information by us having that standard time set and always be looking out you know that standard time set into the future