CASH BUDGET: A TOOL FOR DECISION MAKING IN AN ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY, IBADAN

ABSTRACT This study investigates the effectiveness of cash budgeting as a decision-making tool within the Nigeria Bottling Company (NBC) in Ibadan. The research aims to evaluate the current cash budgeting practices at NBC, assess the accuracy of cash forecasts, examine the impact of cash budgeting on the company's financial performance, and identify challenges in implementing effective cash budgeting. A descriptive and exploratory research design was employed, focusing on relevant stakeholders in financial management, including finance managers, accountants, and department heads, with a sample size of 100 participants selected through purposive sampling. Data were collected using semi-structured interviews and structured questionnaires, and analyzed using descriptive statistics and the Chi-square method with the Statistical Package for Social Sciences (SPSS). Findings indicate that NBC’s cash budgeting practices significantly enhance its financial performance by aligning with the company's overall financial strategy and enabling better resource allocation. However, challenges persist, particularly in cash forecasting accuracy due to external economic factors and gaps in reliable financial data. Operational hurdles, including unforeseen costs and the complexity of the organizational structure, further impede effective cash budgeting. Despite these challenges, employee training is viewed positively, suggesting that it supports the budgeting process. In conclusion, while NBC's cash budgeting positively impacts its financial health, it must address the challenges of data accuracy, external fluctuations, and operational costs to enhance its budgeting practices. Recommendations include improving data management systems, enhancing training programs, increasing flexibility in budgeting processes, streamlining organizational structures, and conducting regular reviews of cash budgets. These strategies will enable NBC to adapt effectively to changing market conditions and improve overall financial performance.