How does your business make money on a day-to-day basis? Your organization’s operating activities include everything that relates to how you generate revenue. Generally speaking, cash flow statements are comprised of three core components: 1. Ready to skip ahead and create your own cash flow statement? Download our free Cash Flow Template now. A typical cash flow statement shows cash flow on a monthly basis over a 12 month period. A cash flow statement shows how much cash a business has on hand, and how that number is changing over time. Most simply, cash flow statements tell the story of how much cash a company has coming in (inflows), and how much it has going out (outflows). Regularly reviewing or analyzing your cash flow statement will show you when in the future you might be at risk of running low on cash so you can plan ahead and get a line of credit, loan, or other financing before you’re in the midst of a cash crunch. It is one of the best ways to get ahead of cash flow issues before they threaten your long term viability. More importantly, your cash flow statement is crucial for running your business well. Not only will investors want to see how cash is moving into and out of your business, but your cash flow statement will help you understand exactly how much cash you need to raise and when you’re going to need it.Ĭash flow statements aren’t just for investors, though. If you’re putting together a business plan for a loan or investment, your cash flow statement is one of three must-have statements that your plan needs.

Cashflow game sheet pdf