Question

Describe the cash budgeting process. How is this process handled in your current organization?

Answer 1

Question: cash budgeting process and How is this process handled in your current organization? Solution: Cash Budgeting process: *In a layman's approach the cash budget means a prediction of cash receipts and expenditures for a particular time period. It usually covers a period in the short-term future. The process of cash budget helps to determine when income will be sufficient to cover expenses and when we need to seek outside financing. *Common processes include communication within executive management, establishing objectives and targets, developing a detailed budget, compilation and revision of budget model, budget committee review, and approval this process handled in your current organization *Cash budgets tie the Operating and Capital budgets together and take into account the timing of payments and the timing of receipt of cash from revenues. Cash budgets help management track and manage the company's cash flow effectively by assessing whether additional capital is required, whether the company needs to raise money, or if there is excess capital. Strategic Plan Business Plan Budget Cather *You need to track and evaluate the effectiveness of the strategies, using relevant measures. *Finally, you should set targets that you would like to reach by the end of a certain period. The targets should be quantifiable and time-based, such as an increase in the volume of sales or an increase in the number of products sold by a certain time to acheive the organisation objectives.