Definition

Cash budget

The cash budget is a projection of anticipated cash flows. Because cash is so vital, this budget is often considered to be most important financial budget. The cash budget contains the three sections (cash receipts, cash disbursements, and financing) and the beginning and ending cash balances.

A cash budget contributes to more effective cash management. it shows managers when additional financing is necssary well before actual need arises. And, it indicates when excess cash is available for investments or other purpose.


Cash budget is the budget that shows cash inflows and outflows during a period of time.

Share it:  Cite

More from this Section

  • Income taxes
    Under the U.S. pay-as-you-go system of federal income taxes, employers are required to ...
  • Internal control
    Internal control consists of all the related methods and measures adopted within an organization ...
  • Management by exception
    Management by exception means that top management’s review of a budget report is focused ...
  • Cumulative dividend
    Cumulative dividend is a feature of preferred stock entitling the stockholder to receive ...
  • Debt to total assets ratio
    Debt to total assets ratio is a solvency measure that indicates the percentage of total ...