Kassabudjetointi

Kassabudjetointi, often translated as cash budgeting, is a financial planning tool used by individuals and organizations to forecast and manage their cash inflows and outflows over a specific period. It provides a clear picture of the anticipated cash position at different points in time, helping to identify potential shortfalls or surpluses.

The process typically involves estimating all expected sources of cash, such as salaries, sales revenue, investments, and loans, as well as all anticipated cash expenditures, including rent, salaries, supplies, loan repayments, and taxes. By comparing these inflows and outflows, a business or individual can determine their net cash flow for each period.

The primary purpose of a cash budget is to ensure sufficient liquidity to meet financial obligations. It helps in proactive decision-making, such as arranging for short-term financing before a deficit occurs or planning for investments when a surplus is expected. Regularly reviewing and updating the cash budget against actual performance is crucial for its effectiveness as a management tool. It is a fundamental component of sound financial management, promoting financial stability and operational efficiency.