cash budget

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Cash budget

A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances.

Cash Budget

An estimate of the expected cash inflows and cash outflows for a company or individual for a given period of time. A cash budget is vitally important because it measures the liquidity of a company (or individual) and therefore how much one can spend before beginning to have financial difficulties. See also: Budget.
Cash budgetor cash flow forecastclick for a larger image
Fig. 17 Cash budgetor cash flow forecast. A typical example.

cash budget

or

cash flow forecast

an accounting statement which analyses expected cash receipts and payments over forthcoming trading periods with a view to anticipating any potential cash shortages or surpluses before they arise and thus allow appropriate remedial action to be taken. This action could take the form of tightened CREDIT CONTROL to get cash in from customers more quickly, or arranging short-term loans in advance to cover an expected cash shortage, or plans to invest profitably any expected cash surplus. Fig. 17 shows a typical cash budget. See BUDGET, BUDGETING, BUDGETARY CONTROL.
References in periodicals archive ?
Working capital and working capital productivity help monitor liquidity but should be used to supplement forecasts and cash budgets as opposed to replacing them altogether.
"At a meeting of education directors on Friday it seems many authorities will set flat cash budgets for schools (reflecting councils' flat cash budgets) and will expect schools to absorb the pressures.
It addresses the different world of tech start-ups and how it affects finance; start-up contribution, financial, and progress analysis; preparing for and analyzing cash budgets to understand how much money is needed, as well as debt funding; and equity financing, valuing a start-up, and crowdfunding.
Mr Jamieson said: "The government have made it clear that to maintain cash budgets at current levels precepts must be increased by the maximum amount.
But the Home Office said PCCs will enjoy a 0.5% increase in their overall cash budgets in 2016/17 if they take action to maximise the amount they receive from council tax in what is known as the "police precept".
Managers seeking to improve analytical skills with new accounting and finance tools will find this handbook emphasizes learning thorough example, and teaches the basics of accounting form how to prepare a set of basic financial statements to interpreting profit, cash budgets, pricing strategies to suit different kinds of markets, and more.
He said the cards would not augment the petty cash budgets of the agencies involved.
Now under this new drive the PM has now been forced to offer people 'cash budgets' to buy their local services.
Following an introductory overview of financial planning and models, the text covers specific tools including interactive cash budgets and pro forma financial statements, valuation techniques, forecasting techniques ranging from simple averages to time series methods, Monte Carlo simulation, linear programming, and optimization.
"This is because visitors from Africa are high quality key buyers with big cash budgets looking for high quality products and are a perfect match to the profile of Automechanika Middle East," Dehn observed.
"The council has rejected any cuts in services spending or petty cash budgets."
Scott thought it would be beneficial to prepare two additional cash budgets, one based on 75 new members and another with 125 members.