Cash Budget Management

Cash, as corporation blood, reflects business capital to a great extend. Ensuring normal business operation, cash cycle also plays a key role in capital appreciation. Effective cash administration must take both liquidity and earning efficiency into account. Since cash administration consists largely in its budget control, good budget control can guarantee thriving business and sustainable development.Sharing almost the same basic principle in aim, content and system, complete budgetary control consists a lot in cash budget control. Thus we don't discuss this in detail in the following chapters. The main points in of cash budget control consist of prediction of cash flow, early warning management, cash budget check. Cash flow prediction is used as estimating corporate circulating fund in a certain time (varying from one day to one year), including short-term prediction, operating prediction and long-term prediction. Cash flow reflects corporate business running, mirrors financial situation and provides the basis for economic decisions. Cash early warning serves the key link in financial risk prevention. Mission-oriented results audit of cash budget is generally the estimation of how the corporate resources can be adapted to markets and partially is the examination of how are the contributions of every department to corporation.Every corporation must build up a system of rewards and penalties carefully related to the cash budget, which ensures the cash budget control runs smoothly. An appropriate management accounting system should be established in order to achieve the perfect connection between accounting and cash budget control, providing foundation for cash budget control check and reports for cash budget management.This thesis analyzes current problems existing in corporate cash budget management, investigates the reasons and furthermore proposes how to enhance the corporate cash management.