Answer to Question #78643 in Finance for Liam Johnston

Question

How frequently should the budget review occur?

Answer 1

Rigid forecasts and budgets aren't very useful. Things change as the year progresses, and you need to be able to factor in those changes and how they will affect your business. Continuing to base decisions on the best guesses made months prior can lead to faulty and costly decisions. In addition, holding employees to metrics based on out-of-date information is counterproductive and frustrating. Building flexibility into your budgeting and forecasting will allow for more accuracy and better results in your business.
Source:
https://www.accountingdepartment.com/blog/ten-ways-to-improve-your-budgeting-forcasting