What does a rolling budget allow a business to do?

A rolling budget is a dynamic budgeting approach that allows a business to continuously update its financial plans based on new data and changing conditions. By providing the ability to adjust for changes in economic conditions, a rolling budget ensures that the budget remains relevant throughout the year. This means that as market conditions fluctuate, the business can adapt its budget to reflect new realities, making it easier to allocate resources effectively and respond to opportunities or challenges as they arise.

In contrast, the other options do not accurately capture the primary function of a rolling budget. While eliminating financial discrepancies is important in overall financial management, it is not a specific benefit of having a rolling budget. Similarly, while managing expenses is critical for any business, reducing overall expenses is not guaranteed through a rolling budget—it primarily facilitates adaptation rather than direct cost reduction. Additionally, while a rolling budget may indirectly influence project timelines by providing updated funding and resource allocation, it does not directly streamline project timelines, which is a more operational concern rather than a budgeting strategy.