Cash Budgeting Checklist ( FINANCE )

This checklist is designed to guide the process of creating a cash budget for the upcoming period, ensuring that all income and expenses are accounted for and that sufficient cash flow is maintained to meet operational needs.

• Gather Historical Data

  Collect historical financial data, including past cash inflows and outflows, to establish a baseline for the cash budget.

• Estimate Future Cash Inflows

  Project future cash inflows based on anticipated revenue, collection schedules, and other income sources.

• Estimate Future Cash Outflows

  Estimate future cash outflows, including fixed and variable expenses, payroll, and any other anticipated expenditures.

• Calculate Net Cash Flow

  Subtract total estimated cash outflows from total estimated cash inflows to determine the net cash flow for the budgeting period.

• Assess Cash Reserves

  Review current cash reserves and consider any planned expenditures that may impact cash availability.

• Adjust Cash Budget

  Make adjustments to the cash budget based on the net cash flow analysis and cash reserves to ensure a balanced budget.

• Review and Approve

  Present the cash budget to management or the finance committee for review and approval before finalizing.

• Monitor Cash Flow

  Implement a system for ongoing monitoring of cash flow against the budget throughout the period, making adjustments as necessary.