Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is Cash Budget?

Budgeting is the act of planning accounts for the future. A cash budget plans out the expected cash flow of a business.

Sales and production estimations are used along with historical cash flow data to project where money will come from and where it will be spent in the months ahead. A cash budget tends to be laid out on a monthly basis.

Accounting is the documentation of the outlay of all expenses and income from the past, while budgeting is act of building an outlay for the future. A cash budget tries to ensure that there is more cash coming in than going out; any excess cash can be rolled forward into the budget plans for the following months, and this is called a cash roll.

If a company decides it does not have enough liquidity to operate in the future, they may use a factoring company give them a loan on their receivables, or take another sort of loan, or issue bonds, which are a form of debt.

Keywords: bonds, accounting, cash flows, factoring companies, budgeting, cash roll,