The a profit and loss budget so that the company knows how much profit it will receive or what losses it will incur so that the company can make a program plan to manage its finances well. Financial Budget This budget is one of the most important things in the companys master budget planning system. This is a budget that contains estimates and estimates of the production process and activities that the company will carry out in a certain season or period. Companies use financial budgets to show the companys cash flow and financial position with planned business activities.

The financial budget provides clear information regarding the goals objectives results and  Job Function Email List benefits to be achieved. For this reason the preparation process requires personnel who understand various information relevant to financial budgeting. In the financial budget there is a cash budget and a balance sheet budget both of which are complementary parts Cash Budget Contains estimates of sources and uses of cash in a certain time period. This budget contains the operating budget and capital expenditure budget and can be used as a basis for preparing the balance sheet budget.



This budget is often created to help maintain company liquidity. Companies use cash budgets to know when the company is in a deficit or surplus. A companys deficit or surplus can be seen from the companys operations. Another function is by knowing whether there is a cash deficit in the company before determining the budget the company can plan appropriate steps to cover the deficit that occurs. On the other hand by knowing well in advance that there will be a large cash surplus you can plan long beforehand how to use the excess funds efficiently. Balance sheet budget A balance sheet budget is a budget that plans the financial condition of a company for a period. the amount of assets amount of debt and equity of.