Rolling budgets are continuous budgets that are regularly updated after the expiration of previous budgets, or they can be called extensions of current budgets. Budget rollovers are also known as rolling budgets.

A rolling budget is a budget that changes with the time. The budget is made up of months, weeks, days, hours, minutes, and seconds which can all be covered when spending money. With this type of budgeting method there are no set budgets for certain periods in the year.

A rolling budget is a dynamic financial planning tool that continuously updates by adding a new budget period as the current one expires. Unlike traditional static budgets, which remain fixed for a set timeframe (e.g., a year), a rolling budget extends forward, typically by a month or quarter, ensuring the planning horizon stays constant. For example, a 12-month rolling budget updates every month, dropping the most recent past period and adding a new future one. This approach enhances flexibility, allowing businesses to adapt to changing market conditions, inflation, or unexpected expenses. It promotes better forecasting accuracy and long-term financial control by incorporating real-time data. Rolling budgets are particularly useful in volatile industries where constant adjustments are necessary to maintain financial stability and strategic alignment.