budget for cash planning and control that presents expected cash inflow and outflow for a designated time period. The cash budget helps management keep cash balances in reasonable relationship to its needs. It aids in avoiding idle cash and possible cash shortages. The cash budget typically consists of four major sections: (1) receipts section, which is the beginning cash balance, cash collectionsfrom customers, and other receipts; (2) disbursement section comprised of all cash payments made by purpose; (3) cash surplus or deficit section showing the difference between cash receipts and cash payments; and (4) financing section providing a detailed account ofthe borrowings and repayments expected during the period.
estimated cash receipts and disbursements for a future period. A comprehensive cash budget schedules daily, weekly, or monthly expenditures together with the anticipated cash flow from collections and other operating sources.
estimated cash receipts and disbursements for a future period. A comprehensive cash budget schedules daily, weekly, or monthly expenditures together with the anticipated cash flow from collections and other operating sources. Cash flow budgets are essential in establishing credit and purchasing policies, as well as in planning credit line usage and short-term investments in commercial paper and other securities.
