An annual plan that survives contact with the business
A driver-based annual budget and a rolling forecast that updates against actuals every month. Not a one-time exercise in November that goes stale by March. For $2M to $50M companies that need a plan leadership can actually steer by.
The Challenge
The annual budget exists. It was built in November in a three-week sprint by the CFO or controller, approved by the board in December, and filed. By March it is already wrong. Revenue is tracking 20 percent off plan, two function heads have already blown their full-year expense budgets in the first quarter, and no one has reopened the budget file since the board meeting. Leadership is now running the business off a gut-feel forecast that no one wrote down.
The problem is not that the budget was wrong. Budgets are always wrong. The problem is that the budget is a static artifact and the business is a moving target. Without a rolling forecast that refreshes against actuals every month, the budget becomes a historical document inside 90 days and leadership is flying without instruments.
Our Approach
We run the annual budget as a structured planning process tied to the operating model, not as a spreadsheet exercise. The budget is built bottoms-up by function heads against explicit assumptions, reconciled top-down to revenue targets and capital constraints, and approved with documented scenarios for base, upside, and downside.
Then we install the rolling forecast cadence: the budget refreshes monthly against actuals on a 12-month or 18-month rolling basis, variance commentary explains why a line moved, and re-forecast cycles happen quarterly tied to the operating plan. The budget is not a document. It is a live instrument that leadership steers by every month.
What You Get
- Annual budget built bottoms-up by function head with explicit assumption ownership
- Top-down reconciliation against revenue targets, capital constraints, and the strategic plan
- Three documented scenarios: base, upside, downside
- Rolling 12 to 18-month forecast refreshed monthly against actuals
- Monthly variance commentary with diagnosis of root cause, not description
- Quarterly re-forecast cycle tied to the operating plan
- Budget versus actual reporting pack built into the monthly close
- Function-head training so budget ownership moves out of finance and into the business
Engagement Model
Annual budget build runs 4 to 6 weeks. Rolling forecast cadence runs monthly thereafter. Standalone engagement or bundled with Fractional CFO or FP&A. Month-to-month with 30-day notice. The annual build cycle is typically run in the September to November window, but we can pick up mid-year if the existing budget has already broken.
Who It's For
Built for $2M to $50M companies where the annual budget has already broken or where leadership is making decisions on a gut-feel forecast that no one has written down. Typical triggers are a missed first quarter, a board asking for a re-forecast, a planned fundraise requiring a credible forward plan, or a new CEO or CFO joining mid-year. We are not the right fit for pre-revenue startups where the plan changes monthly. Those businesses need a rolling operating model, not an annual budget.
Related Services
Financial Planning & Analysis
Driver-based FP&A built to run the business, not to sit in a deck. Rolling forecast, variance commentary, and monthly reporting pack on a standing cadence.
Learn more →KPI & Reporting Dashboards
One dashboard with three views tied to the operating cadence: weekly operating, monthly leadership, and quarterly board.
Learn more →Fractional CFO
Embedded CFO leadership 2 to 4 days per month. Board-grade reporting and capital strategy without a $300K salary on the cap table.
Learn more →Frequently Asked Questions
Ready to Get Started with Budgeting & Forecasting?
Schedule a complimentary consultation and we will map out a practical financial plan tailored to your goals.