Revenue and Cash Budgets

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 01, 2023


Revenue budgets are primarily concerned with sales income or income generated in other ways.

Revenue needs to be scheduled as to when it is expected to come in and how it is to be allocated. This is part of the function of the cash budget.


An operating budget is prepared in terms of revenues and expenses. For financial planning purposes, it translates into cash receipts and cash disbursements. This is the cash budget.

Cash budgets ensure that the company has enough—but not too much—cash on hand during the period ahead.

Preparation of a Cash Budget

When preparing a cash budget, it is important to calculate and project forward cash receipts and cash disbursement items.

You should also remember:

  • Exclude depreciation and other non-cash items from the cash budget
  • Round-up the figures, which is normal in budgets; budget users do not need precise estimates, and so rounded-up whole numbers are adequate

Revenue and Cash Budgets FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.