cash flow forecast

This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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June 2, 2021 at 2:41 pm #622781

jermy01
Participant

1. whats is the cash budget & cash flow forecast?
2. what’s the difference between those?
please give an example

June 2, 2021 at 4:19 pm #622808

John Moffat
Keymaster

They are the same thing and are explained in our free Paper MA lectures.

June 2, 2021 at 4:28 pm #622810

jermy01
Participant

The cash budget I believe is fixed. Cash forecast is based on cash budget but you update it with the actual cash flows that come in and out every day. So at the end of the financial year, your cash budget has now become your actual cash flows through the year.

Is this correct? at least can you tell me this? it going to a help for me

June 2, 2021 at 4:33 pm #622812

John Moffat
Keymaster

The cash budget is not fixed and most companies will update it periodically. How often they choose to update it is up to them – as with all management accounting there are no rules.

However the updating is not relevant for Paper MA anyway.
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