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Cash Budget

Cash budget shows the estimated amount of cash receipts and cash payments. We estimate cash receipts and cash payments on the basis of past data. We also estimate on the basis of our business policies.

 For example, we will get cash from debtors after two months. It means, we sell credit on 1 jan, we can estimate that cash will receive in march. Like this, we can estimate the payment to creditors. If our policy is to pay the creditors after one month. Credit purchase in 1 feb. will be payable in march. There are some fixed payments like payment of income tax, internet bill will be due on its specific date. So, with way, we prepare cash budget. If you want to learn more detail, you can learn from following resources.

1. Learn from cash budget example.

2. Learn from cash budgeting.

3. Learn from following video.

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