Unit 6 Bus 3301

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Pages: 2

Learning Journal Unit 6 BUS 3301

Cash flow budgets are useful for business leaders as they provide a comprehensive overview of the financial health and trajectory of a company. Primarily, the use of a cash flow budget is to predict the business’s ability to take in more cash than it spends, indicating the business’s capacity for expansion (Enright, 2021). Additionally, the budgets outline the expected inflows and outflows of cash over a specific period, allowing leaders to anticipate potential cash shortages or surpluses. By projecting cash flow, leaders can make informed decisions regarding investments, expenses, and financing options. This foresight enables them to allocate resources effectively, prioritize expenditures, and mitigate financial