A Comparative Analysis of Cash Flow and Comprehensive Budgets

This report presents a comparative analysis of cash flow and comprehensive budgets, highlighting their distinct features and applications in financial planning. It explains that the comprehensive budget encompasses all aspects of financial life, including recurring and non-recurring incomes and expenditures, while the cash flow budget focuses on the movement of cash over a specific period. The report emphasizes the cash flow budget's utility in tracking actual cash flows and its role as a specialized component within the broader comprehensive budget. It also discusses how cash flow budgets can be derived from comprehensive budgets and used for specific asset management, such as tracking the income and expenses related to particular investments. The report underscores the importance of budgeting as a tool for financial planning and achieving specific financial goals such as cutting expenses and increasing savings.

Running Head: COMPREHENSIVE BUDGET
COMPREHENSIVE BUDGET
Name of the Student
Name of the University
Author Note

1COMPREHENSIVE BUDGET
Table of Contents
Cash Flow Budget as an alternative to Comprehensive Budget................................................2
References..................................................................................................................................3

2COMPREHENSIVE BUDGET
Cash Flow Budget as an alternative to Comprehensive Budget
Comprehensive budget is the budget which covers all the aspects of the financial life
which includes projections of the incomes and the expenditures that are recurring as well as
projections of the non recurring expenditures. Earnings from the wages, dividends and
interest are considered as the recurring incomes and expenses such as living expenses, regular
savings or the deposits of investments and the repayments of loan is considered as recurring
expenditures. The expenses of non-recurring may be for capital improvement such as
purchases of durable items and so on (Andor, Mohanty & Toth, 2015).
The cash flow budget is the useful alternative for the comprehensive budget, when
there is need for knowing the actual cash for the specific period of time. The cash flow
budget is the budget which projects the specific aspects of the finances that is cash flows. The
other kind of the speculated budget focuses on the one particular aspects of the cash flows.
Therefore, the specialized budget is included in comprehensive budget because it is the part
of the total activity of finance. Usually, it reflects the one particular aspects of activity in
more detail such as effects of owning as well as maintaining the particular assets. Budget can
be created for the particular assets by segregating the income and expenses from the
comprehensive budget. Hence, if cash flow budget can be known from the comprehensive
budget (Doye, 2016).

3COMPREHENSIVE BUDGET
References
Andor, G., Mohanty, S. K., & Toth, T. (2015). Capital budgeting practices: A survey of
Central and Eastern European firms. Emerging Markets Review, 23, 148-172.
Doye, D. G. (2016). Budgets: Their use in farm management.