A cash budget is a company’s estimate of cash inflows and outflows over a specified period of time, which can be a week, month, quarter, or year.
The company will use the cash budget to determine if it has enough cash to continue operating for a given period of time.
A cash budget will also give a company an idea of its cash needs and any surpluses, which will help determine if the business is using cash effectively.
Cash budgets can be thought of as short-term cash budgets, typically weeks to months in time, or long-term cash budgets, which are thought of as years.
The company must manage its sales and expenses in order to achieve optimal cash flow.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.