What is a cash budget, and how can this statement be used to help reduce the amount of cash that a firm needs to carry? What are the advantages and disadvantages of daily over monthly cash budgets, and how might a cash budget be used when a firm is negotiating a loan from its bank?

Cash Budgets, speaks to the cash assortments and cash dispensing of an organization or firm over a particular period demonstrating the cash deficiency and surplus for that period.  

A cash budget plan is significant, particularly for independent ventures as it helps in recognizing an organization to decide how a lot of cash is required over the particular time frame and aides in diminishing the measure of cash that a firm needs to convey.  

Favorable circumstances of Daily cash balance over month to month cash balance.  

Every day cash checking.  

Course of action of cash to meet the every day necessity  

Disadvantages Daily cash balance over month to month cash balance  

More inconveniences in setting up the cash proclamation on regular schedule.  

Issue in haggling with bank for advance.  

Cash budget helps in identifing the shortage and when the firm needs the cash and in like manner the firm can haggle with the bank.

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