Cash Budget
Accounting glossary · Understand, connect, apply
A cash budget forecasts cash receipts, cash payments and resulting cash balances over future periods. It helps identify expected funding needs or temporary cash surpluses.
Example
Opening cash is 8,000, forecast receipts are 15,000 and payments are 19,000. Closing cash before new financing is 4,000. A required minimum of 6,000 implies a 2,000 funding need.
Remember the difference
Use expected payment and collection dates rather than simply copying revenue and expenses. Exclude noncash depreciation and avoid counting a credit purchase again when payment is recorded.
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Published 4 November 2026. Prepared with AI assistance; examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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