All 34 Cash Budgeting questions
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What is a cash budget? Why can a profitable business run out of cash? Why are non-cash items like depreciation excluded from the cash budget? What is the difference between a cash budget and a budgeted cash flow statement? Why is the opening cash balance important in a cash budget? What is the difference between cash flow and profit? What is a receipts and payments budget? Why do lenders and investors often ask for a cash budget? What is a cash surplus and cash deficit in the context of a cash budget? How do you calculate cash receipts from credit sales?
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Budgeting & Forecasting › Cash Budgeting

What are typical cash inflows and outflows in a cash budget?

Beginner

Answer

Inflows: cash sales, receipts from receivables, loan proceeds, capital injections, asset sales, interest received. Outflows: payments to suppliers, wages, overheads, capital expenditure, loan repayments, interest, tax, dividends. Only actual cash movements are included, timed to when they occur (allowing for credit terms).
Real-world example Receipts from customers and a bank loan are inflows; supplier payments, wages, and tax are outflows.

Common follow-ups: Are non-cash items included? | How is timing handled?

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All 34 Cash Budgeting questions