| Cash Budget |
Cash forecast |
| Cash Budget is usually prepared for short periods ranging upto one year. | Cash forecast is for longer terms exceeding one year such as 3 years, 5 years, etc. |
| Objective is to ensure short term liquidity and avoid default in timely discharge of current liabilities. | Objective is to study sources of funds for various future requirements. |
| Thrust is on current assets and liabilities and maintaining cash cushion for safety. | Capital receipts and capital expenditure, investments dominate this number game. |
| Usually prepared by junior management team for perusal of senior managers. | Usually prepared by senior management for perusal of Directors, Owners. |
|
It is working capital management activity. |
It is more of investment planning activity. |
Distinguish between cash budget and cash forecast
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