Cash budgets are completed only on an annual basis because shorter periods of time are too variable and uncertain for meaningful results.

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Cash budgets can be completed on a monthly, quarterly or even weekly basis depending on the needs of the company. Shorter periods of time allow for more accurate and meaningful results as they take into account fluctuations in sales, expenses and cash flow on a more frequent basis. Annual cash budgets may still be useful for long-term planning and forecasting, but they should not be the only tool used to manage a company's cash position.

Cash Budgets Are Completed Only on an Annual Basis Because