A "6+6 budget" typically means creating a new budget that shows six months of actual financial data combined with six months of forecasted financial data.
In other words, the budget will consist of:
- 6 months of actuals: The actual financial performance data from the past six months.
- 6 months of forecasts: Projected financial performance data for the next six months.
This type of budget is often used as a rolling forecast to recalibrate expectations and adapt to changing business conditions. By comparing actual results to budgeted forecasts, companies can identify discrepancies and make necessary adjustments. If the expectations built into the budget aren't materializing, then it indicates a need to revise future projections.
