Zusammenfassung der Ressource
Cash Budgeting
- Businesses need cash
- To pay wages
- No workers means
nothing produced
- To buy stock
- No stock means
nothing to sell
- To pay fixed costs
- Mortgage
- Rent
- Electricity
- Taxes
- Cash Flow Problems
- Too much money tied up in stock
- Owner takes out too much money
- Customers take too long to pay
- Purchasing fixed assets
- Increase in costs/expenses
- Not enough sales
- To
resolve
Cash
Flow
Problems
- Offer discount for
prompt payment
- Offer discount to customers
- Sell any unused assets
- Arrange an overdraft/loan
- Cut costs
- Reduce waste
- Interpreting a Cash Budget
- Look for trends in
Sales - going down
- Look for trends in
Purchases - going up
- Look for trends in
wages - going up
- Look for large items of
expenditure eg
vehicles/machinery
- Look for decreasing
monthly balance
- Look for decreasing
total income
- Benefits of cash
budgets
- To see if there's
excess cash
- To help decision making
- To show if extra
finance is required
- To help control expenses