A monthly cash flow statement template excel is a valuable tool for businesses of all sizes. It provides a snapshot of a company’s cash inflows and outflows over a specific period of time, typically one month. This information can be used to track the company’s financial performance, identify trends, and make informed decisions about future spending and investment.
There are many different monthly cash flow statement template excel available online, but they all share some common features. Typically, a cash flow statement will include the following sections:
Operating Activities
This section includes all cash inflows and outflows related to the normal operations of the business. This includes revenue from sales, cost of goods sold, and operating expenses such as salaries, rent, and utilities.
To calculate operating cash flow, simply subtract the cost of goods sold and operating expenses from revenue. This will give you the amount of cash that the business has generated from its normal operations.
Operating cash flow is a key metric for businesses because it shows how much cash the business is generating from its core operations. A positive operating cash flow is a sign that the business is healthy and able to meet its financial obligations.
Investing Activities
This section includes all cash inflows and outflows related to the purchase and sale of long-term assets, such as property, plant, and equipment. It also includes investments in other companies and loans to other entities.
To calculate investing cash flow, simply add up the cash inflows from the sale of long-term assets and investments and subtract the cash outflows from the purchase of long-term assets and loans.
Investing cash flow is important for businesses because it shows how the business is using its cash to grow and expand. A positive investing cash flow is a sign that the business is investing in its future.
Financing Activities
This section includes all cash inflows and outflows related to the financing of the business, such as issuing stock, borrowing money, and paying dividends. It also includes changes in the company’s cash balance.
To calculate financing cash flow, simply add up the cash inflows from issuing stock and borrowing money and subtract the cash outflows from paying dividends and changes in the cash balance.
Financing cash flow is important for businesses because it shows how the business is financing its operations. A positive financing cash flow is a sign that the business is able to meet its financial obligations and grow.
Conclusion
A monthly cash flow statement template excel is a valuable tool for businesses of all sizes. It provides a snapshot of a company’s financial performance and can be used to track trends, identify opportunities, and make informed decisions about future spending and investment.
If you are not already using a monthly cash flow statement template excel, I encourage you to download one and start tracking your cash flow today. It is a simple and effective way to improve your financial management and make better decisions for your business.
