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Understanding Cash Budgets. A cash budget is used to estimate the cash inflows and cash outflows anticipated by a company over a period of time. Budgets are often looked at over a 1-month, 3-month or 12-month time period.
An income budget is a specific type of budget that only shows how and where money is earned. This type of budget can be used for professional purposes in a business or can be used for personal reasons, if a single person has various streams of income.he income budget shows in detail how much is coming into the business and where it is coming from, while the master budget shows the entire operation of the business. In other words, the master budget shows how the money from the income budget is being spent within the business.