Cash budget

This is an important financial analysis which reviews future funding requirements.

The cash budget shows the expected flows of cash in and out of the organisation (for example spending on raw materials and labour, and income from sales). Based on the organisation’s predicted levels of business activity, it predicts the expected levels of cash (typically this is cash held in the bank) in the business and identifies any potential need for additional funding (loans etc.).

Cash budget is a term normally found in management accounting, strategic management and financial management.

Explore our learning zone to discover more