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Explain the benefits of preparing a cash budget.

      

Explain the benefits of preparing a cash budget.

  

Answers


Lydia
? It shows whether the business will have a surplus of cash which will allow them to plan future purchases
? It shows whether the business will have a deficit which will allow them to make adjustments to spending
o Or arrange an injection of cash to avoid the deficit
? To make comparisons between predicted and actual figures this will help monitor the performance of the business
? Highlighting periods where expenses may be high will allow action to be taken to control spending
? It aids decision making as it provides cash flow information for decisions to be based on
lydiajane74 answered the question on May 31, 2018 at 12:36


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