Quarterly budget
In one sentenceDividing the annual budget into four quarters according to the seasonality of the business, to make monitoring easier and compare each quarter with its plan.
Simply put
Sales are not spread evenly over the year. Many businesses have seasons such as Ramadan, the Eids, and back-to-school, so the budget is divided by season, not equally.
Quarterly comparison gives you enough time to adjust before the end of the year.
Worked example
A clothing store has an annual sales budget of 1,200,000 SAR and divided it according to its seasons.
First quarter (20%)240,000 SAR
Second quarter (25%)300,000 SAR
Third quarter (20%)240,000 SAR
Fourth quarter (35%)420,000 SAR
Total of the quarters240,000 + 300,000 + 240,000 + 420,000 = 1,200,000 SAR
Don't confuse it with
Rolling budgetA rolling budget adds a new quarter whenever a quarter ends; a quarterly budget divides a fixed year.