CASH BUDGETING

a)      Cash Budget shows the policy and programme of cash inflows and outflows to be followed in a future period under planned condition.

b)      Cash Budget usually of 2 parts gives detailed estimate of cash receipts and cash distribution. Estimate of cash receipts budget on cash incoming. Estimate of cash distribution based on cash outgoing.

c)      Cash Budget is a tool of control since it represents actions which can be shaped to will so that it can be suited in the conditioning which may or may not happen.

d)     Cash Budget begins when Cash Forecasting ends. Cash Forecasting is convince in Cash Budget.

e)      Cash Budget has a limited scope.

f)       Cash Budget denotes a definite target.

CASH FORECASTING:

1. Cash Forecast is a main estimate of cash balance likely to happen under anticipated conditions using a specified period of time.

2. Cash Forecasting is an estimate showing amt of cash which would be available in future period.

3. Cash forecast being statement of future event does not connote any sense of control.

4. Cash Forecasting is a preliminary step for Cash Budgeting. It ends with the forecast of likely cash balances.

5. Cash Forecast is a wider scope.

6. Cash Forecasting denotes some degree of flexibility.