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- Should a NFP Budget include starting cash balances?
Should a NFP Budget include starting cash balances?
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katie
Level 3
yesterday
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I am working on a budget for a NFP client. I created a budget in Excel that includes Revenue and Expenses based on historical data. When I emailed the budget, one of the members asked me why I wasn't including the starting cash balances. I haven't responded yet.
I understand that the starting cash balances represent the amount of cash the organization had at the beginning of the budget period, but why would I include cash balances on the budget if the statement of activities shows a deficit without them? Their bylaws state that they cannot operate with a budget that is in a deficit.
Please help me understand this. Is the member correct? Should I be including starting cash balances?
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