After the operating budget has been prepared, an entrepreneur can proceed to the next phase of the budget process, which is the cash-flow budget.

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The operating budget is a detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period. Once it is prepared, the entrepreneur can then proceed to prepare the cash-flow budget, which forecasts the cash inflows and outflows over a period, helping to ensure that the business has enough cash to operate.

After the Operating Budget Has Been Prepared, an Entrepreneur Can