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Cash Budget |
Also found in: Medical | 0.03 sec. |
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Cash Budget An estimation of the cash inflows and outflows for a business. Notes: A cash budget is extremely important, especially for small businesses because it allows a company to determine how much credit can be extended to customers before they begin to have liquidity problems. Cash budget A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances. |
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? Mentioned in | ? References in periodicals archive | ||
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| With a cash budget of $7 million, the organization handled nearly $55 million in donated food last year, and spends only 2 percent on overhead costs. Now, multiply that by six (3 months living expenses and 3 months operating expenses), and you'll need $18K as an initial cash budget to start your business, in addition to the initial franchise fee and other franchise specific costs. Periodically review your cash budget to make sure you are doing the best job you can to keep the right amount of cash invested in each category of assets. |
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Cash Budget
