Cash Flow Statement Template

Cash flow statement is a cash flow statement worksheet that shows the process and procedure of presenting the business cash flow information to interested groups. A well designed cash flow statement template can help investors and managers to make right decision on investment and operation.


Cash Flow Statement Overview

Cash flow statement can help investors to know the business operation. For any business to run successfully, the owners and investors must maintain a detailed record of all the transactions made and received by the company, which can help them to evaluate the company activities, and expand or contract the expenses as necessary. While most companies maintain Income statements and Balance sheets to record their transactions, another interesting complementary technique involves the maintenance of a Cash Flow statement.

Cash flow statement help business to understand the details of their cash in and out. Also known as the Statement of Cash Flows, this form of record keeping, enables a company to maintain a detailed account of all the money that enters and leaves the company within a particular financial period, with special reference to the finances, operations and investments indulged in, by the company associates. Maintaining a Cash Flow Statement enables the investors to see whether the operational activities are really causing an improvement in the Company’s net income, or merely depreciating the funds. In case there is a positive income effect, then the activity must be sustained and the company must invest more with stocks, pay back some of its debts, increase the dividend, and perhaps acquire another firm under it! But contrarily, if a Cash Flow Statement records a negative income effect generated by any operational activity, the owners must be alarmed at once, and seize the operation to avoid further financial losses.

cash flow statement Template

When designing cash flow statement template, it is important to consider cash flow statement template objectives and functions. There are various types of cash flow statement example for different objectives. For example, personal cash flow statement template, indirect cash flow statement template, direct cash flow statement etc.

There is free cash flow statement example you may download. You may also use Microsoft Excel or Microsoft Word to design your cash flow statement sample. During the process of design cash flow statement sample, it is important to consider the cash flow statement format, cash flow statement layout and cash flow statement outline in the cash flow statement example.

The first key part in the cash flow statement template is the header. In the section, you need to give basic information on the background and objectives. It is also important to state the period of the cash flow included.

The second key part in the cash flow statement sample is the main body. In the section, you need to key categories of cash flow such as operating cash flow, investing cash flow and financing cash flow.

The last key part in the cash flow statement example is the footer. In the section, you need to give information on how the cash flow are calculated and compiled.