A cash flow budget is a list of cash inflows and outflows over a period of time. It is a plan drawn up to help you forecast what cash will be available to a business to help it meet its obligations.
For example…
At the beginning of every year, Pets Rule, creates a business plan that includes a cash flow budget. This is done so that the owners are aware of what bills and repayments or cash outflows need to be met at specified times of the twelve month period. It also forecasts the inflows including predicted sales revenue, approved grant payments and other known cash inflows over that time. This helps Pets Rule have an idea of their cash flow situation at all times during the year.
