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


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 ?
The cash budget balance differs from the "operating balance" reported in the Crown's accounts, in that the operating balance is not measured on a cash basis, but is measured on an accrual basis.
The most important observation about this cash budget is that it indicates that Data Flow can anticipate spending more cash than it collects during the budgeted period.
The main thing I have learned is that you have to work to a strict cash budget, and, within that we will be working to get Wrexham promoted.
With these actions, we balanced the cash budget for the year.
Not only is the cash budget a guide in daily operations, it is also a base with which to compare actual results and pinpoint areas of concern.
A cash budget shows when cash receipts and disbursements are expected to occur.
Figure 1 presents an example of a monthly cash budget for residential rental property.
Think of a file with a number of cash budget worksheets; some of the data in the cells are in one typeface and some in another; in addition, the file contains a consolidation worksheet and a documentation worksheet.
For example, cash can be traced to the cash budget.
But he does face a selection problem with several of his non-contract players looking to continue their non-league careers elsewhere following the drastic cut in the team's cash budget.
He asked: "For example, Uganda operates a cash budget and if Kenya collects the taxes and remits the money at a loss because of differences in exchange rates, who will bear the loss?