“Stories and lessons from an unexpected journey in finance.”

It is January 20th. Statistically, most New Year’s resolutions are already broken. The gym is quieter. The kale smoothies have been replaced by the usual morning coffee.

Resolutions fail because they are rigid declarations made in a vacuum. Yet, businesses fall into the same trap. We spend Q4 agonizing over the “Annual Budget”—a static document declaring exactly what we will spend and earn. We lock it in, high-five the Board, and then… reality happens.

The Static Budget Trap

The problem with a static budget is it assumes the world stands still. It assumes November’s assumptions remain 100% accurate in July.

When you cling to a static budget in a dynamic market, you aren’t being disciplined; you’re being delusional.

• If revenue spikes: You can’t capitalize because you didn’t budget for the extra headcount.
• If the market turns: You keep spending because “it was approved,” burning cash on a strategy that is no longer viable.

Enter the Rolling Forecast

If a static budget is a Resolution (“I will lose 20 lbs.”), a rolling forecast is a lifestyle change (“I’ll adjust my diet weekly”).

A rolling forecast creates a continuous view, usually looking 12-18 months out, updated monthly.

Here is why this shift is critical:

1. Kills “Use It or Lose It”: Managers stop rushing to spend budget in December just to secure it for next year. Resources are allocated based on need, not permission.
2. Allows agility: Competitor drop prices? Supply chain hit? You can re-calibrate immediately without waiting for next year’s cycle.
3. Focuses on drivers: It forces you to look at business drivers (units, churn) rather than just financial output.

Stop Predicting, Start Adapting

The CFO’s goal isn’t perfect prediction—that is impossible. The goal is to build a structure that thrives regardless of the future.

Resolutions are for people who want to feel good in January. Rolling forecasts are for leaders who want to win in December.

Let’s discuss: Is your finance team still locked into an annual budget cycle, or have you successfully made the transition to rolling forecasts?

#TheAccidentalCFO #inersec #FinanceLeadership #RollingForecast #BusinessStrategy