Linking budgeting and cashflow planning

Cash flow planning is an extension of budgeting, linking the allocation of resources with the management of available funds. Budgeting serves as the foundation. Cash flow projections break it down into operational details, helping the organisation anticipate cash inflows and outflows. This integration ensures that the organisation has the needed funds at the right time, maintaining financial stability and aligning short-term financial management with long-term goals.

We are not going to focus on how to prepare a cashflow projection in this course. This course assumes you are already doing a cashflow projection. In this section we are going to review some ideas on how you can maximise your cash planning and give you an opportunity to decide what you need to implement now so that you have healthier cash planning.

Planning your cashflow well will ensure you continue to serve the communities you work in long into the future.