Cash Budgeting

Cash Budgeting

The importance of cash budget is that we can predict the future availability of cash (whether we will have a deficit or a surplus cash) and, on that basis, to make decisions. The cash budget allows us to know the future site of a project or business: whether the future will be profitable or business project (when future income is higher than future expenses), or whether we will be able to pay on time a debt. We can present information to third parties, for example, wanting to demonstrate the future profitability of the business (for example, to ...