Horizontal budget

A horizontal budget (also called a financial spreadsheet, or electronic financial spreadsheet) is a demonstration of the financial elements of your business' operation spread over a period of time, typically 12 months. It takes an vertical financial budget and amortizes each line item over the planning period.

This financial planning tool is used to demonstrate the unrelenting impact of time on the financial operation of a business, because it allows you to project when revenue will be received and overlay that with expense disbursement, so you can identify the likely periods of negative cash flow.

A horizontal budget may be the most important management tool for any small business owner.

Search again for related key words on this topic.