Final answer:
The cash budget is important for an organization to manage its finances effectively by tracking cash flow and making informed decisions.
Step-by-step explanation:
The cash budget is especially important to an organization in order to manage its finances effectively. A cash budget is a financial plan that outlines the organization's expected inflows and outflows of cash, allowing it to track its cash flow and make informed financial decisions. By creating a cash budget, an organization can ensure that it has enough money to cover its expenses and meet its financial goals. For example, a company can use a cash budget to determine if it can afford to make a large investment or if it needs to cut costs to improve its cash position.