What is a cash flow budget?

Your business needs consistent cash flow to maintain operations. Learn how to build a cash flow budget PDF to help you monitor your business’s financial health.

Cash flow budgeting 101.

A cash flow budget estimates your business’s cash flow over a specific time period. You can use the information to see if you have enough cash coming in to maintain regular operations over the given timeframe.

It can also give insight into how to allocate your budget effectively. If you end up with a surplus at the end of the period, you can reallocate that money to exploring new opportunities or expanding your business.

How do you create a cash flow budget?

It’s not easy to estimate cash flow off the top of your head, so build a cash flow budget. It’s all about managing your income and expenses over your chosen time period.

Follow these steps to build your cash flow budget:

  1. Determine your timeframe (weekly, monthly, quarterly, annually, etc.)
  2. Estimate your total income over the period. Break it down by source and payment timing.
  3. Estimate your total expenses over the period, broken down by source and timing.
  4. Subtract your total expenses from total income to determine surplus or deficit over the timeframe.

Hopefully, you’ll end up with a surplus at the end of the period. That means your business has extra cash on hand that you can use to grow. If your cash flow budget shows a deficit, you know it’s time to find other avenues of income or cut some of your expenses.

To stay organized, create a spreadsheet that can keep track of income and expenses over time. Then, convert the Excel spreadsheet into a PDF to simplify sharing and collaboration with your team. You can also work with PDFs online to make managing your cash flow budgets even easier.

Discover more about how Adobe Acrobat DC can simplify managing your business budget.