Cash Budget and Cash Flow Planning

russian roots reggae, bedroom pop ska · 3:54

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Lyrics

[Verse 1]
Sarah's spreadsheet glows at midnight, columns filled with future dreams
Inflows from her customers, outflows to suppliers' schemes
Twelve months mapped in careful rows, receipts and payments planned
Cash budget tells the story of liquidity in her hands

[Chorus]
C-A-S-H, watch it flow in and out
Receipts minus payments equals what it's all about
Timing gaps and shortfalls, financing fills the space
Cash flow planning keeps you in the liquidity race

[Verse 2]
January starts with fifty thousand sitting in the bank
March collection slows to crawl, receivables draw a blank
April shows a deficit, twenty thousand in the red
Line of credit bridges gaps until collections get ahead

[Chorus]
C-A-S-H, watch it flow in and out
Receipts minus payments equals what it's all about
Timing gaps and shortfalls, financing fills the space
Cash flow planning keeps you in the liquidity race

[Bridge]
Seasonal patterns, cyclical swings
Credit terms matter, payment timing stings
Minimum balance, covenant compliance
Buffer reserves show financial guidance

[Verse 3]
Weekly rolling forecasts track the actual versus plan
Variance analysis reveals where cash slips through your hands
Accelerate collections, stretch the payables with care
Optimize the float between, liquidity to spare

[Chorus]
C-A-S-H, watch it flow in and out
Receipts minus payments equals what it's all about
Timing gaps and shortfalls, financing fills the space
Cash flow planning keeps you in the liquidity race

[Outro]
From operating budgets to capital expense
Cash flow reconciliation makes financial sense
Thirteen weeks or fifty-two, the principle stays true
Liquidity management sees your business through

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