Define cash budget and what is budget
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Both cash budget and regular budget are different. Both are estimates that are proposed for the future duration, be it a month or a year.
Cash budget is related to cash / currency (in liquid form) for daily/weekly expenses -- how much currency is to be maintained with the accounts dept. (or SB A/C in liquid form) for payments. Also cash/payments received in liquid form are part of these. Depending on the time of the year (like festivals or other days or beginning of the month), the cash budget varies. Usually further approvals may not be required for the cash budget.
Keeping too much of assets in cash or liquid form will not be productive, as that money could be used in productive activities. Keeping too less will hinder the activities.
Budget is done for allocation of expenditures for various purposes over the next year. They need not be in cash. Further approvals are required for each project or activity later on. These are the estimations of incomes and expenditures under various categories over the next one year. Often the amounts allocated in the budget are released in phases for each activity.
Cash budget is related to cash / currency (in liquid form) for daily/weekly expenses -- how much currency is to be maintained with the accounts dept. (or SB A/C in liquid form) for payments. Also cash/payments received in liquid form are part of these. Depending on the time of the year (like festivals or other days or beginning of the month), the cash budget varies. Usually further approvals may not be required for the cash budget.
Keeping too much of assets in cash or liquid form will not be productive, as that money could be used in productive activities. Keeping too less will hinder the activities.
Budget is done for allocation of expenditures for various purposes over the next year. They need not be in cash. Further approvals are required for each project or activity later on. These are the estimations of incomes and expenditures under various categories over the next one year. Often the amounts allocated in the budget are released in phases for each activity.
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A cash budget is a budgetor plan of expected cash receipts and disbursements during the period. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payments. In other words, a cash budget is an estimated projection of the company's cash position in the future.
A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. At companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties.
A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. At companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties.
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