How would you develop a cash budget for your company?

Question

How would you develop a cash budget for your company?

Answer 1

Short question with a loooong answer.

One good quick solution is to keep good records for a few months regarding how your business uses cash, how much money you generally make in a month, and then start planning ahead.

Once you can map out your expenses, you can start making better estimates.

A good place to start is the bank statement.  Try to "funnel" all income and expenses through one bank account if possible.  This makes your bank statement into a good record of where the money came in and where it went out.

Use a spreadsheet program, like Microsoft Excel to help handle record-keeping and do the mapping out of future cash flows.

Another good bit is buying some accounting software, like Quickbooks, Peachtree, Quicken, etc.  They usually have add-ons and tutorials about doing things like this.