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Running head: CASH BUDGETING
A financial plan is the element of a business plan that describes the required resources,
tools and materials and the activities that a business will engage in to meet its set objectives as
illustrated in the business plan. A financial plan involves a statement of the cash flow, profit and
loss, balance sheet, sales projections, personnel plan, and a break-even analysis of the business.
A financial plan also involves cash budgeting which helps businesses in managing their cash
flow. Cash budgets show the planned monthly receipts and payments done in a business. This
paper focuses on cash budgeting for Builders R Us Manufacturing Company and its application
in coming up with the financial plan for the firm’s business plan. The paper further explains how
the firm’s cash budget changes when the firm thinks of increasing its annual revenue by 10%.
Discuss potential cash budget benefits and pitfalls for the business, including how the budget
supports the strategic goal of the business to increase revenue by 10% annually.
A cash budget is very important for the Builders R Us Manufacturing Company. A cash
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