Cash flow statement examples with template download

Overview

Statement of cash flows. This report reveals the cash inflows and outflows experienced by an organisation during the reporting period. These cash flows are broken down into three classifications, which are operating, investing and financing activities. This document can be difficult to assemble, and so is more commonly issued only to outside parties. 

The statement is useful for analysing business performance, making projections about future cash flows, influencing business planning, and informing important decisions. The term cash refers to both income and expenditures and may include investments and assets that you can easily convert to cash.  

By conducting a cash flow analysis, a business can evaluate its liquidity and solvency, compare performance among accounting periods, identify cash flow drivers to support growth, and plan ahead to maintain a positive cash position. 

In a cash flow statement its Operating Activities include things like sales receipts, merchandise purchases, salaries paid, and various operating expenses. The Investing Activities are the buying or selling assets, making loans and collecting payments, and generating cash inflows or outflows from other investments.  

While the Financing Activities it’s for activities such as receiving money from creditors or shareholders, repaying loans and paying dividends, and selling company stock, as well as other activities that impact equity and long-term liabilities. 

But also if you’re starting a new business or planning for the months ahead, creating a cash flow projection can help you anticipate how much money your business will have coming in and going out during a future time frame. 

Download or try and start out with a free Cash Flow Statement Templates here: https://www.smartsheet.com/free-cash-flow-statement-templates