Cash Budgeting Checklist ( FINANCE )

This checklist is designed to assist in the preparation and maintenance of a cash budget, ensuring that all income and expenditures are accurately forecasted and monitored to maintain financial stability.

• Gather Historical Data

  Collect data on past cash inflows and outflows for the previous months or years to establish a baseline for the budget.

• Estimate Future Cash Inflows

  Project expected cash receipts based on historical data, sales forecasts, and any anticipated changes in income.

• Estimate Future Cash Outflows

  Forecast all anticipated expenses, including fixed and variable costs, payroll, and any other outflows.

• Calculate Net Cash Position

  Subtract total projected cash outflows from total projected cash inflows to determine the net cash position for the budget period.

• Adjust for Cash Reserves

  Consider any required cash reserves or minimum cash balance requirements to ensure liquidity.

• Review and Revise Budget

  Review the initial cash budget for accuracy and make necessary adjustments based on feedback and changing conditions.

• Implement Cash Budget

  Put the finalized cash budget into action, monitoring actual cash flows against the budgeted amounts regularly.

• Monitor and Update Regularly

  Continuously track cash inflows and outflows against the budget and make adjustments as necessary to reflect actual performance.