Even for successful and well capitalized businesses, cash budgeting is important.  It involves planning for the inflows of cash into the business so there is cash available to meet cash expenditures.  Proper cash management allows for smooth, uninterrupted operation of the business.  Poor cash management can result in costly business interruptions and delays.  So making projections of cash flows into and out of the business should be constructed and monitored on a regular basis.

Understanding Cash-Flow provides you with an introduction to cash management and why it is important for your business.  Cash Flow Budgeting for a Value-Added Farm Business provides you with a description of how to construct a cash-flow budget for your farm.  After you have developed your budget, Analyzing a Cash Flow Budget provides you with an understanding of the impact on your business.

Additional information on cash management is available in the box at the right.  Also see the worksheets and calculators available on Cash Flow Budgeting at the Business Workbench.