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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.
Simply defined, a budget cycle is how long a budget lasts. The time between one budget and the next is known as the budget cycle. This is no set length of time, and it varies based on the company. Some companies may want to create budgets every year, while others may base budgets on two-year cycles instead.