Which of the following is NOT one of the three steps involved in creating a cash budget?

In the context of creating a cash budget, the primary steps involved are forecasting, planning, and controlling, which ensures an effective management of cash flow.

Forecasting involves predicting future cash inflows and outflows based on historical data and anticipated business activities. This step is crucial as it sets the foundation for understanding the cash needs of the business.

The planning stage focuses on developing strategies to maintain healthy cash flow, including deciding when to invest cash or where to cut expenses. This step transforms the forecasted data into actionable plans.

Controlling involves monitoring the cash budget in real-time, comparing actual results against the budgeted figures, and making necessary adjustments. This ensures that the business remains on track with its cash management goals.

Evaluating, while important in the broader financial process, is not a specific step in the cash budgeting process. Instead, it can be considered as part of the controlling phase when assessing the performance against the set budget.