A 12-month cash flow statement template UK is a financial document that summarises a company’s cash inflows and outflows over a 12-month period. It is an important tool for businesses of all sizes, as it can help them to track their cash flow, identify potential problems, and make informed financial decisions. There are many different 12-month cash flow statement templates available online, but it is important to choose one that is appropriate for your business.
When creating a 12-month cash flow statement, it is important to include all of your expected cash inflows and outflows. Common examples of cash inflows include sales revenue, interest income, and dividends. Common examples of cash outflows include rent, wages, and taxes. It is also important to account for any non-cash items, such as depreciation and amortisation.
Once you have gathered all of your data, you can create your 12-month cash flow statement. The statement should be divided into three sections: operating activities, investing activities, and financing activities. The operating activities section shows the cash flow generated from the company’s core business operations. The investing activities section shows the cash flow used to purchase or sell assets. The financing activities section shows the cash flow used to finance the company’s operations.
How to Use a 12-Month Cash Flow Statement Template UK
Using a 12-month cash flow statement template UK is relatively straightforward. The first step is to gather all of your relevant financial data. This includes your income statement, balance sheet, and cash flow statement. Once you have gathered your data, you can follow these steps to create your 12-month cash flow statement:
- Identify your cash inflows and outflows. This includes all of your expected cash inflows and outflows, as well as any non-cash items.
- Categorise your cash inflows and outflows. The three main categories are operating activities, investing activities, and financing activities.
- Create a 12-month cash flow statement. The statement should be divided into three sections: operating activities, investing activities, and financing activities.
Benefits of Using a 12-Month Cash Flow Statement Template UK
There are many benefits to using a 12-month cash flow statement template UK. Some of the benefits include:
- Improved financial planning. A 12-month cash flow statement can help you to identify potential cash flow problems and make informed financial decisions.
- Increased profitability. By tracking your cash flow, you can identify areas where you can improve your profitability.
- Improved relationships with lenders and investors. A well-prepared 12-month cash flow statement can help you to build trust with lenders and investors.
Conclusion
A 12-month cash flow statement template UK is a valuable tool for businesses of all sizes. It can help you to track your cash flow, identify potential problems, and make informed financial decisions. By using a 12-month cash flow statement, you can improve your financial planning, increase your profitability, and improve your relationships with lenders and investors.
If you are not sure how to create a 12-month cash flow statement, there are many resources available online. You can also consult with a financial advisor for assistance.
