Shorter-term cash budgets, in general, are used for actual cash control while longer-term budgets are used primarily for planning purposes.

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Shorter-term cash budgets are typically used to monitor and control actual cash flow within a company over a shorter time period (e.g. monthly or quarterly), while longer-term budgets are used for forecasting and strategic planning purposes (e.g. annual or multi-year budgets).

Shorter-Term Cash Budgets, in General, Are Used for Actual Cash