What Is Collections budget

The collection budget (or collection forecast) is part of a larger document: the treasury budget, with which we can know the money that the company has (and is expected to have).

Collection means the entry of liquid money into the company and that can have different origins: they can be sales or money can be entered through other means, such as transfers or capital contributions.


When preparing the collection budget, it is necessary to take into account the collection policy of the companies to which we make the sale. Some companies pay on the spot while others pay 30, 60 or even 90 days. These deadlines must be reflected in the collection budget .

For this type of budget, and especially since it will later be reflected in the treasury budget , it is important to take into account the amount that it collects as VAT, which must then be paid to the Treasury (generally done on a quarterly basis).

Considerations when making a collection budget

For a collection budget to adjust as much as possible to reality, it is necessary to take into account a number of aspects:

  • It is necessary to unify criteria. For this reason, it is important that everyone uses the same criteria when preparing the collections section.
  • It is important to take into account the date on which you will actually be able to dispose of the moneypending collection to be able to meet the expenses and payments that the company has.

If you want to see what a collection budget looks like (or a treasury budget), then you can consult a model that you can download and customize according to the needs of your business, or you can also consult other budgets for companies


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