The Cash-Flow Budgeting within a Company

Abstract

Treasury management, in the forecasting stage, anticipates the company's receipts and payments in quantitative terms through the cash inflows and outflows budget. The cash inflows and outflows budget must take into account certain timing differences generated by accrual accounting. In the context of this material, the situation of an entity located in the city of Arad is considered, with retail trade as its main activity, which aims to expand by producing and selling its own organic pasta products. In this context, an Excel-based interface is proposed, which will guide users through several steps in developing the treasury/cash budget, both on a monthly basis for the next 12 months and on an annual basis for the next 4 years, in accordance with the new business component. The importance of the cash inflows and outflows budget is once again emphasized, given that Romania operates under an accrual accounting system, which does not ensure the alignment of the moment an expense is recognized in accounting with the moment it is paid, nor the moment a revenue is recognized with the moment it is actually received. CZU: 657.312.2:657.422.1(498); JEL: G31, M41