2.

Write a report on rolling budgets

 Merits :-
1) Allows You to Even Out Expenses :- A rolling budget allows you to even out the expenses over the year. For example your electric bill may be higher in
the summer due to air conditioning. You can take the average amount you pay during the year and budget that each month. On the months the power
bill is lower you leave the extra money to accumulate for the more expensive months. This allows you to prepare for the big expenses easily. It also
allows you to take advantage of sales on things like clothes or other items that go on sale once a year.
2) You Do Not Start Over Each Month:-A rolling budget means that the mistakes you made last month will affect your expenses the next month. While this
does stop you from building up excess credit card debt, it can be frustrating if you have a bad month or an emergency comes up which puts you behind
in specific categories. There are months you may wish to wipe the slate clean and start over. However, a rolling budget does not allow that to happen. It
may mean struggling to play catch up for several months.
3) Savings and Emergency Planning Built In:-A rolling budget allows you to build your savings and emergency funds easily. The amounts will continue to
build and be listed as part of your budget, where you can easily see the amounts available to you. It is easier to transfer the money to cover the
emergency and then continue building your emergency fund in a rolling budget since all of the categories are displayed in the same way.

Demerits:-
1) Time Consuming - In the same manner, it can also be seen that rolling budgets are also harder to create, manage, and implement. This is because of
the reason that rolling budgets are time-consuming, and hence, might require a significant chunk of time in terms of managing.
2) High Cost:- The cost of preparing will be much higher compared to traditional because we do it twelve times (four times for quarterly budget) more
than the traditional budget. So the cost will higher as well.
3) Administrative:-All departments will require to join many meetings every time the budget required to update. It will even more annoying when the
industry does not change that much within a month. Everything will keep the same, and they just do to complete the work without applying critical
judgment.
How it is the most effective way of budgeting for a tele
health start up

• Telehealth start up can keep a record of average no of users to prepare a Rollin budget.
• Budgeting Helps the company to allocate number of resources in particular operation.
• Once you've got the overall budget of your company's total revenue, you can break down the costs. Think of factors
that will come up naturally in a marketer's day-to-day, and what resources you'll need to make that happen.
• Preparing budget can help telehealth companies to manage expenses of their employees, Services and software
related Expenses.
• Determine how much capital you want to raise, as well as how to sell your idea to investors and consumers.
• Maintaining a steady and healthy budget may help the company to perform efficiently and help them to face future
worse consequences.
• ANNUAL STARTUP BUSINESS BUDGET
EBIT Earnings Before Interest & Taxes

BUDGET x x x x x

ACTUAL x x x x x

VARIANCE x x x x x

PREVIOUS-YEAR ACTUAL x x x x x

PREVIOUS-YEAR VARIANCE x x x x x

OTHER

BUDGET x x x x x

ACTUAL x x x x x

VARIANCE x x x x x

PREVIOUS-YEAR ACTUAL x x x x x

PREVIOUS-YEAR VARIANCE x x x x x

PAT

BUDGET x x x x x

ACTUAL x x x x x

VARIANCE x x x x x
PREVIOUS-YEAR ACTUAL x x x x x

PREVIOUS-YEAR VARIANCE x x x x x

Thank You.
Regards,
Tanmay Rajgadkar
fa26.docplus@gmail.com