Cash flow and budgeting are important management tools which allow businesses to properly manage their performance. Cash flows are the actual indicators of financial stability of a business organisation. More than book profits the business need positive cash flows to remain live in the market and also by analysing the cash flows only the business can plan its future business perspectives. Budgeting is important to the organisations as it gives control to a great extend regarding the future business situations. Cash flow and budgeting when done by professionals improves its reliability as they use scientific and technical estimates and it becomes accurate to the nearest possible extend.