Definition: is an estimated cash influx and outflow for an organization, a business, or a company during a particular period. It is a type of a certain financial plan that is based on the estimations of the expense payments and inflow receipts. Cash budgeting is an essential component of any given business since it allows to estimate how much money an organization or a company has the access to and whether it is sufficient to keep operating. If the cash budget is potentially low, a company may take on debts or issue its stocks.
In a Sentence:
Our cash budget is running in the negative; therefore, we cannot afford to buy raw materials for the production line.
The last year’s cash budget allowed us to pay all of our suppliers on time. This will help us keep the connections strong in the future.
Synonyms and related terms: capital inflow, financial planning, production calculation, cash roll, operating budget, inflow, outflow, cash balance