Budgeting is the act of planning accounts for the future. A cash budget plans out the expected cash flow of a business.

Sales and production estimations are used along with historical cash flow data to project where money will come from and where it will be spent in the months ahead. A cash budget tends to be laid out on a monthly basis.

Accounting is the documentation of the outlay of all expenses and income from the past, while budgeting is act of building an outlay for the future. A cash budget tries to ensure that there is more cash coming in than going out; any excess cash can be rolled forward into the budget plans for the following months, and this is called a cash roll.

If a company decides it does not have enough liquidity to operate in the future, they may use a factoring company give them a loan on their receivables, or take another sort of loan, or issue bonds, which are a form of debt.