What is a Cash Budget?



A cash budget is a plan of the cash balances in the future, taking into account the forecast revenues and expenses.

We need to factor all revenue received and expenses to determine that we will have sufficient money in the bank account at the end of the period.



This is the cash budget format



    Beginning cash balance
plus   Cash inflows
equals   Total cash available 
less   Cash outflows



Here is an example of how a cash budget can be constructed from revenues and expenses.


Budgeting to a service entity



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April 10, 2020
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