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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.
Small Business Information. Definition: A Budget is a plan that outlines an organization's financial and operational goals. So it may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans. The budget is an essential part of a business plan when starting a new business.