Definition of Continuous Budgeting

Continuous budgeting is the process by which company leaders consistently add new budgets to their previous budget plans on a monthly or quarterly basis. This budget is also known as a rolling budget. As contrast to the static budget, where a fixed budget is used for a fiscal year but the dynamics of companies change consistently. Through this approach, managers adjust their budget for the next incremental period to achieve sales or departmental goals.


Continuous budgeting is favorable for a short period, let’s say 3 months’ budget for the sales team. Through continuous budgeting sales department can easily track down their progress and the budget may revise to achieve the likely goals of the company.

View More Cost Accounting Definitions