Free cash flow budget template

The cash budget helps to provide senior management and financial managers with an overview of expected expenses and income for a given period. In other words, the cash budget provides an overview of whether the company's liquidity is sufficient at a certain point in time or over a certain period.

Many companies typically prepare a cash flow budget for a full financial year, but some companies choose to create shorter budgets for a variety of reasons.

Why create a cash flow budget

There are many good reasons to prepare a cash flow budget, regardless of the size of your business. Unfortunately, business income doesn't always come in a steady stream, which can lead to cash flow problems if expenses are fixed.

With a cash flow budget, you can therefore manage and fully or partially avoid running out of money during periods when expenses exceed income.

If the company is unable to cover expenses with its own funds, such as cash or bank balances, the company can either increase its income or use its overdraft facility for a shorter or longer period of time.

How to create a cash flow budget

There are many ways to create a cash flow budget. Many use software programs for this purpose, some have it integrated into their ERP and accounting programs, while the majority still use an Excel format.

The cash flow budget can be designed in a number of ways, from a simple version that lists the company's cash inflows and outflows month by month, to more advanced versions that also include bank debt and overdrafts.

It's up to the individual to determine the complexity of the budget, depending on the structure of the business and the number of cash flows - both income and expenses.

Free cash flow budget template

At Collectia, we support companies with their finances and debt collection on a daily basis. We offer ongoing advice and the right tools. To this end, we regularly publish a range of templates, templates and materials that your company can use.

We have created a cash flow budget template that you are free to use. Remember to customize the template by filling it out and removing items that are not relevant to your business.

Enter your income and expenses in the budget, which will help provide a clear overview of your cash flow each month.

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