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Cash Budgets

A cash budget is an estimate of expected cash receipts and expenditures. It is necessary for any business, especially a small business where every dime Screen shot reprinted by permission from Microsoft Corporation. counts. Cash budgets should be prepared six months ahead or, if possible, twelve months ahead with revision as needed.

When you help your boss develop a cash budget, it must be a realistic estimate. A cash budget is completely useless unless it is based on realistic, sober judgment springing entirely from experience.


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