Cash Budget Template and the Example You May Use
Having cash is useful for several reasons. You can pay directly without delaying. However, keeping the cash is not easy task. You must know how much the cash to be available. Too much cash is not good for financial situation. On contrary, lack of it makes your business look bad. To overcome this situation, you should consider using cash budget template.
The template is for cash budget, which means you plan and allocate the cash based on necessary task and transaction. Keep in mind this kind of budget template is different from regular budgeting you always make. In this template, you may expect to obtain the cash in hand. That money will be sent directly to certain transaction.
Why Do You Need Cash Budget Template?
You can rely on cash budget template due to some purposes. Below list explores what the cash budget can do. Furthermore, you must know the factors behind making this budget template.
- Payment and transaction
The most common purposes are the payment or transaction. Today, you can do the digital transaction. Even though the money is not in solid thing at you hand, this kind of transaction is considered as cash payment. You pay without delaying and adding credit. Mostly, people use debit card or any payment app for that purpose. Credit card payment is not cash because you do not have cash, but paying the loan to bank or credit union.
- Cash position
Cash budget is useful to know the cash position. You can check cash outflow and inflow. Budget is projection, which means you can estimate how much money at the end of period.
- Decision making
Another purpose is for decision-making. Business owners must do the quick change when their cash is not in good position. Even though the estimation is very accurate, there is gap between budget and real spending.
Types of Cash Budget Template
You will also find cash budget template with various designs. One template and another may look different but the basic outline is relatively similar. Most types of cash budget are listed at below section.
- Personal cash budget
Personal cash budget is for private use, commonly for single person. You earn money from work and other sources. This template helps to estimate the spending and allocate the money properly.
- Weekly and monthly template
The template uses timeline, such as weekly and monthly basis. Weekly cash budget is for one week, and the monthly one is for entire month. You can manage the cash during such period.
- Business cash budget
As it mentioned above, business uses cash budget as a part of system to support the sales and financial management. Moreover, business owner must spend money efficiently. To accommodate that situation, cash budget is the best tool at all.
Well, the template is in digital file that you can download. To open and edit it, just use computer or smartphone. Choose the file that’s compatible to software and platform you have. Usually, the file is common type that majority software can open. Due to many options, you can choose cash budget template based on your need and preference.