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Cash Flow Statement Templates: Definition, Use, Importance, and Example

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8 septembre 2022
Temps de lecture : 4 min
text a définir

Cash flow is the total of funds that come in and out of a business. It is known to hold a record of all the cash movement of the business. There are two known funds, namely inflows and outflows. The first one is the money that is received, while the latter is the funds of a business. It has three classifications, namely operations, investment, and financing. The financial statement is recorded in an Excel file, and a template can be used for the easier collection of data. The Cash Flow Statement Template is a pre-made form that helps create a cash flow statement easily and is less time-consuming.

What are Cash Flow Statement Templates?

Cash Flow Statement Templates are forms that are already organized and serve as a guide to designing a cash flow statement. Templates are files or records that are prepared ahead of time for people to use. They are made that way so that the user will only have to do a little editing on some areas of the form. A cash flow statement template is a guideline as well for the firm on what they should input. They will only have to indicate the values on each label to generate the data they need. These templates may already have formulas applied to them for easier computation.

What are the uses of Cash Flow Statement Templates?

Cash Flow Statement Templates are very useful for a company in creating its financial statements. Typically, the statement indicates how many funds the business has available on hand. In addition to that, it can show where the money is being spent and where it comes from.

Listed below are the uses of cash flow statement templates.

- Save time: Because of the premade templates, it saves time by not having to reconstruct the sections.

- Set a foundation: The templates will serve as a basis to forecast different cash flow situations.

- Precise and professional: The template is used to create a more accurate and professionally made financial statement.

What does a Cash Flow Statement Template look like?

What are the elements of a Cash Flow Statement?

A cash flow statement is known to have three main components. Based on the cash flow analysis, they are essential for easier tracking of the cash balance in the company as it is already categorized. The classification depends on where the money comes from and what it is spent on. It means that the funds should be indicated in the right category to know what to deduct and add in order to generate the net income of the company.

Listed below are the elements of a Cash Flow Statement.

- Operating Activities: component of the financial statement that will come from the day-to-day functions of the business.

- Investing Activities: element where the funds can either be gained or lost by selling or buying properties and resources.

- Financing Activities: tasks will provide funds that will come from the lenders and shareholders.

What is the importance of a Cash Flow Statement?

A cash flow statement is important because it gives an insight into where the money comes in and out. Another importance of the Cash Flow Statement is that it can provide the necessary information that the firm needs to design cash short and long-term plans. They will be able to know what areas need their attention and come up with a solution to the problems. The company can design an idea to increase the cash flow of the business. With that being said, the financial statement is vital for the crisis management of the firm.

How to create a Cash Flow Statement Template in Excel?

A financial statement can be created using a piece of software called Microsoft Excel. It is a spreadsheet that offers users the ability to calculate. Listed below are the steps to creating a cash flow template in Excel.

1. Select a time to cover: Typically, cash flow statements are broken down into monthly intervals.

2. Assemble the data: prepare the details that are needed to be included in the financial statement.

3. Categorize the data: The data collected can be categorized into three classifications: operations, investments, and financing.

4. Make an Excel File: Open Excel and create a new file and edit it by writing the company’s name, period, and cash beginning and ending.

5. Indicate the subcategories: Other than the main categories, there are subcategories in each of them.

6. Utilize Excel Formula: Excel is known to be used to compute different data using its own formula. By using a simple combination of formulas, the computation process will be less time-consuming. Use the sum command to get the total for each category. Additionally, formulas for multiple months should be set if comparisons will be done.

7. Arrange the rows and numbers: When the values are negative, the rows should be highlighted in red. In that way, it will be easier to see and understand the financial statement.

8. Write the value: Finally, indicate the real monetary values and put a negative sign on the expenses.

Is it easy to create a Cash Flow Statement Template?

Yes, it is easy to create a cash flow statement template because, just as mentioned above, there are only a few steps to follow in order to create a template. The Excel software already has the features the user needs in order to create one. All the company has to do is follow all those steps above, and they can have a form that they can use all throughout their business period.

Is there a cash flow tracker that provides Cash Flow Statement Templates?

Yes, there is a cash flow tracker that provides cash flow statement templates as well. A Cash Flow Tracker is an app or software that is designed to monitor and handle the cash flow of a business. It is used to see how well the company did in the past and project its profitability in the future. Trezorino is a real-time automated cash management service that offers users the ability to track their financial situation in the past, present, and future by inputting the needed data from the cash flow statement. Additionally, it aids them in examining the cash flow of the company, thus making it easier to see what areas are needed to focus on.

Is there a free Cash Flow Statement Template?

Yes, there is a free cash flow statement template available online. In fact, there are many free templates from websites like Trezorino. It offers a unique cash flow statement template where the funds can be categorized as well, just like any other cash flow statement. In addition to that, the cash flow can be forecasted easily while inputting the values on the table.