Cash Budget Template

A budget based on actual inflows and outflows of cash

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What is a Cash Budget Template?

A cash budget template is a budget based on actual inflows and outflows of cash, as opposed to being based on accounting principles such as revenue recognition, matching, and accruals, which may result in very different numbers. A cash budget is important for personal and business planning, as it indicates how much funding is required or how much surplus cash is produced over a period of time.

Cash Budget Template - Screenshot

Example of a Cash Budget Template

Below is an example of a generic monthly cash budget template in Excel that you can download and use for your own purposes.

The template includes several sections:

  • Cash in from the sale of goods/services
  • Cash out for expenses
  • Cash in/out for investing
  • Cash in/out from financing
  • Total change in cash in each period

How to Use the Cash Budget Template

In order to make the template work for you, you’ll need to make several changes to it.  The first thing is to add your company name and change the dates or time periods as appropriate.

Next, change the names of all the sources of inflows/outflows of cash in the operation section and add or remove rows as necessary.  Make sure the totals sum up correctly after making the changes.

Following that, add any investing and finance cash flows as appropriate.  A common approach is to leave financing until the end and decide if any is required if excess cash may be returned to investors.

Finally, look at the net figures in the final row called “total increase/decrease in cash” and analyze your cash budget.  You may decide expenses should be increased or decreased and other changes are required to optimize the budget for your company.

Note: The cash budget template is for educational purposes only and should not be relied upon without professional advice.

Pros and Cons of a Cash Budget

There are several advantages and disadvantages in preparing a budget on a cash basis.  Here are some key pros and cons:

  • Provides precise timing of when cash comes in and out of the company
  • Gives a clear picture of the net financial position of the business
  • Challenging to get details about when cash will be received for revenue and when each bill will be paid
  • Doesn’t tie exactly to the income statement

In a perfect world, a financial analyst would prepare an operating budget, a capital budget, and tie everything together in a fully-linked three-statement financial model.

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Additional Resources

Operating Budget Template

How to Link the 3 Statements

DCF Modeling Guide

See all FP&A resources

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