Understanding Cash Budgets

Understanding cash budgets is a key to accurately and profitably coming up with a budget for your company. The technical definition of a cash budget is an estimate and a forecast of the estimated cash receipts and disbursements for your company within a particular period of time. The cash budget for a small business is the only budget that is needed. However, if your business is larger, then the cash budget is the link between your master budget and all of the individual budgets for different departments within your company or corporation. The cash budget is an overview and overall picture of how money is going to be moved to your business bank account and from your business bank account.