Users of a cash budget

Question 1

what is the purpose of a cash budget?

Answer 1

Cash Budget

Purpose
Achieved
To predict the future movements of cash received and paid and change in bank balance over a period of time for the (insert name of the Business here).
Merit

It highlights areas of financial concern and allows the (user name) time to make decisions about the financial arrangements needed to ensure there is enough cash available to continue to run the business into the foreseeable future. Eg get a new loan, reduce expenses, increase income.

Components

o	Cash Receipts for period
o	Cash Payments for period
o	Net increase/decrease in cash for period
o	Opening bank balance
o	Closing bank balance