cash budget

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 ?
Use the cash budget - you'll thank yourself in January when you don't have any Christmas debts to pay and give yourself the gift of no worries.
Major topics include: Detailed discussion of how to adjust the books at period-end; How to close the books for all business types; Cash basis accounting compared to accrual basis; Worksheets; Merchandising operations for both major types of inventory systems; Financial statements of merchandising companies; Accounting systems and special journals; Cash and the three cash control procedures (internal control, cash budget, statement of cash flows); Receivables; Inventory costing; Long-term assets; Payroll procedures; How to prepare and analyze a statement of cash flows; The use of accounting software and an accounting software checklist; and Bonds.
If you set a daily cash budget and stick to it you can't go wrong.
They must arrange everything with a cash budget of PS14,000, from the dress and the venue to the stag and hen parties, in the space of three weeks while having no contact with their wife-to-be.
These performances resulted in a cash budget deficit of 6.3 per cent of GDP, better than the Budget target of 7.3 per cent and 10.2 per cent in 2014.
The question is: "How much?" Currency expert Darren Kilne said: "Having up to PS250 in cash for emergencies or day-to-day spending is reasonable under normal circumstances, but it might be wise to increase this and use a daily cash budget while Greece finds stability and the ATM situation is resolved.
Use descriptive names that include the table name, such as "Empty Product Table," "Empty Cash Budget Table," and so forth.
The introduction of the cash budget model or of the accrual budget model raises controversy, being correlated with the two accounting models applied to the public domain.
The Management and Staff of Magellan Solutions have decided to utilize the cash budget that was originally allocated for the annual Halloween decoration contest to jumpstart a fundraising program called the Orange Drive.
Nearly PS90,000 can be removed from the annual cash budget, which is equivalent to two constables or police community support officers.
Accordingly, whereas a balanced cash budget is one in which cash inputs outweigh outputs, all costs incurred in a given period of time are considered when using the accrual basis of accounting (Robinson, 2002c).