What type of budget specifically tracks actual money coming in and going out?

The cash flow budget is specifically designed to track the actual cash coming in and going out of a business over a given period of time. This type of budget is crucial for understanding the financial health of a business, as it focuses on the liquidity aspect—ensuring that the business can meet its short-term obligations and manage its cash flow effectively.

A cash flow budget allows management to forecast cash inflows from various sources, such as sales and investments, as well as cash outflows for expenses, debt repayments, and capital expenditures. By comparing projected cash flows against actual cash flows, businesses can make more informed decisions about spending, investing, and preparing for any potential cash shortages.

In contrast, while the capital budget focuses on long-term investments and expenditures, and the operational budget outlines the projected revenues and expenses for regular business operations, these do not emphasize cash flow directly. The zero-based budget method involves justifying all expenses for each new period rather than basing it on previous budgets, further diversifying it from the direct tracking of cash inflows and outflows that the cash flow budget specializes in.