Cash Flow and Budgeting Flashcards
1
Q
What is a budget?
A
A budget is a plan for how money flows, it forecasts income, expenses and capital needed for business
2
Q
What are the advantages of budgeting?
A
Planning and control, identifies short term problems and communication
3
Q
What the disadvantages of budgeting?
A
Can be inefficient, controllable and uncontrollable factors might not be predicted and inflexibility
4
Q
What are ways to improve a cash flow forecast?
A
Spread the cost of expenses, reduce credit on sales, reduce money spent on inventory and reduce capital loan
