Cash flow budget

Drawing up a CDM is a direction thatbecomes today a priority in the management of any company. Periodicity of construction can be completely different. The cash flow budget, as a rule, is formed for the year with a breakdown by months. At the same time, it is necessary to take into account that it is considered the most variable and flexible in the process of the performed activity part of the accounting forms. In this regard, a large spread in practice has acquired a monthly budget for the movement of funds, broken down by day and date. Compilation and approval of it is carried out every month, three or five days before its completion. In the process, all structures and units whose activities are in touch with the planning and direction of the directions in accordance with which the money (finance) is spent, should take part.

Finance refers to a category of assets that has the highest level of liquidity. This degree allows the company to have the greatest freedom of choice during the economic activity.

According to the traditional opinion, effectiveconducting business at the enterprise is possible with a positive balance of cash. However, in practice this situation is ideal. Professional, well-planned items of cash flow allow you to fulfill the tasks of effective management of the company. Very often, many experts assign the main place to this procedure.

As the world practice shows, special attentionis given to the methods by which the budget of cash flows is studied and forecasted. This is mainly due to the "irregularity" of payments and receipts that arise during the course of business, which can provoke unforeseen various circumstances. They, in turn, negatively affect the liquidity of the company. Often the shortage in cash is the first indicator of a crisis situation in the company.

In different countries with developed economies, the cash flow budget acts as the initial data used in analyzing the financial state of the organization.

The financial flow begins and endsproduction and commercial cycle in any enterprise. The company's activity, according to one of its concepts, is profit-oriented. But in the end, income is not money. More important is the resulting financial flow. On its basis, a new production cycle begins and, with its help, resources are redistributed.

Effective cash management is possible with knowledge of its magnitude and structure. There are two main directions in the management of the company's financial flows:

  1. Analysis. At this stage, the cash flow is optimized.
  2. Forecasting. In this direction, cash outages are eliminated.

Analysis of financial flows should result fromprovide comprehensive information on the volume and sources of funds, the ability of the company to ensure the current budget surplus, as well as the reasons for the discrepancy between the amount of income received and the balance of funds.

Forecasting has a special place in the processmanagement of financial flows. Often the construction of special budgetary forms arises in case of need in lending or the search for investments, that is, under the influence of external factors.

Specialists note that these directions are considered priority, but not exhaustive.

Informative budget of financial flows is possible when covering all areas of cash flow.

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