Back to results for “Cash Budgeting”
Budgeting & Forecasting › The Master Budget

What is the master budget?

Beginner

Answer

The master budget is the comprehensive, consolidated financial plan for the whole organization for a period, combining all operating and financial budgets. It culminates in three budgeted (pro forma) financial statements: the budgeted income statement, the budgeted balance sheet, and the budgeted cash flow (or cash budget).
Real-world example The master budget brings sales, production, cash, and capex budgets together into pro forma financial statements.

Common follow-ups: What three statements result? | What does it consolidate?