Meaning
A vital financial planning tool, a Cash Budget manages an organization’s liquidity by tracking money movement.Definition
A cash budget forecasts expected cash inflows and outflows over a specific period. It helps businesses predict their future cash position accurately.Purpose
Its primary purpose is to ensure sufficient cash to meet obligations, identify potential shortages or surpluses, and support informed financial decisions.Key Components
Key components include beginning cash balance, cash receipts (e.g., from sales, loans), and cash disbursements (e.g., for expenses, investments).Author
