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Understanding Cash Budgets. A cash budget is used to estimate the cash inflows and cash outflows anticipated by a company over a period of time. Budgets are often looked at over a 1-month, 3-month or 12-month time period.
budget. 1  an estimate, often itemized, of expected income and expense for a given period in the future. 2  a plan of operations based on such an estimate. 3  an itemized allotment of funds, time, etc., for a given period. 4  the total sum of money set aside or needed for a purpose: the construction budget.