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This question is about employer.
What is a master budget?
A master budget is a budget that displays all of the information of an organization's revenue-generating activity, focusing on an overview of profit and expenses. Professionals use data and information from a company's operating budget to determine a company's master budget.
Master budgets reflect the following items:
Cash inflows
Cash outflows
These items are determined by a company's cash flow statement, and estimations included on a company's balance sheet at the end of an accounting period.
Master budgets aim to summarize all of an organization's other budgets, financial activities, and financial plans. Master budgets normally contain two main sections. The first is a planned operating budget for the company. This details how much the company is projecting to gain in revenue in the coming fiscal year.
The second section in a master budget is a financial budget. This section outlines how much a company plans to spend and what it plans to spend its money on.
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