Return to 143 articles to start your own home based business opportunity directory SAMPLE CASH BUDGET You could think of a budget as a "record in advance," projecting future inflows and out- flows for your business. A budget is usually prepared for a single year, generally to cor- respond with the accounting year. It is then broken down into quarterly and monthly pro- jections. There are different kinds of budgets, in- cluding cash, production and sales. A cash budget, for example, forces the firm to think ahead by estimating sales and expenses for a particular period of time. Once reasonable pro- jections are made for every important product line or department, the owner-manager sets sales and expense targets for employees. You must plan to assure a profit. And you must prepare a budget in order to plan. A sample cash budget is shown below. Sample Cash Budget Expected Cash Receipts: 1. Cash sales 2. Collections on accounts receivable 3. Other income 4. Total cash receipts Expected Cash Payments: 5. Raw materials 6. Payroll 7. Other factory expenses (including maintenance) 8. Advertising 9. Selling expense 10. Administrative expense (including salary of owner-manager) 11. New plant and equipment 12. Other payments (taxes, including estimated income tax; repayment of loans; and interest) 13. Total cash payments 14. Expected cash balance at beginning of month 15. Cash increase or decrease (item 4 minus item 13) 16. Expected cash balance at end of month (item 14 plus item 15) 17. Desired working cash balance 18. Short-term loans needed (item 17 minus item 16, if item 17 is larger) 19. Cash available for dividends, capital cash expenditures, and/or short investments (item 16 minus item 17, if item 16 is larger than item 17) Capital Cash: 20. Cash available (item 19 after deducting divi- dends, etc.) 2 1. Desired capital cash (item 11) 2 2. Long-term loans needed (item 21 minus item 20, if item 21 is larger than item 20)

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