Final answer:
A potential pitfall of preparing and maintaining a rolling budget is the possibility of complacency and lack of accuracy.
Step-by-step explanation:
A potential pitfall of preparing and maintaining a rolling budget is the possibility of complacency and lack of accuracy. When constantly updating a budget, there is a risk of overlooking important changes or failing to track expenses and income accurately.
For example, if a business fails to account for unexpected expenses or changes in market conditions, it may lead to financial mismanagement and budget shortfalls. This can impact the business's ability to make informed decisions and achieve its financial goals.