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Cash Flow Statement - a free document template from Bedin.no
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Note: This document is of a general nature. The contents must be adapted to the
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Notes on Preparation
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instructions, click the border of this text box and then press the DELETE key.
Note: In the "Twelve Month Cash Flow" sheet, enter amounts only in the 'white' cells. Cells

with a light blue colour are calculated automatically.

Refer back to your Budget (Profit & Loss Projection). Line-by-line ask yourself when you
should expect cash to come and go. You have already done a sales projection, now you
must predict when you will actually collect from customers. On the expense side, you
have previously projected expenses; now predict when you will actually have to write the
check to pay those bills. Most items will be the same as on the Profit & Loss Projection.
Rent and utility bills, for instance, are usually paid in the month they are incurred. Other
items will differ from the Profit & Loss view. Insurance and some types of taxes, for
example, may actually be payable quarterly or semiannually, even though you recognize
them as monthly expenses. Just try to make the Cash Flow as realistic as you can line by
line. The payoff for you will be an ability to manage and forecast working capital needs.
Change the category labels in the left column as needed to fit your accounting system.
Note that lines for 'Loan principal payment' through 'Owners' Withdrawal' are for items that
always are different on the Cash Flow than on the Profit & Loss. Loan Principal Payment,
Capital Purchases, and Owner's Draw simply do not, by the rules of accounting, show up
on the Profit & Loss Projection. They do, however, definitely take cash out of the business,
and so need to be included in your Cash plan. On the other hand, you will not find
Depreciation on the Cash Flow because you never write a check for Depreciation. Cash
from Loans Received and Owners' Injections go in the "Loan/ other cash inj." row. The
"Pre-Startup" column is for cash outlays prior to the time covered by the Cash Flow. It is
intended primarily for new business startups or major expansion projects where a great
deal of cash must go out before operations commence.
The bottom section, "ESSENTIAL OPERATING DATA", is not actually part of the Cash
model, but it allows you to track items which have a heavy impact on cash. The Cash Flow
Projection is the best way to forecast working capital needs. Begin with the amount of
Cash on Hand you expect to have. Project all the Receipts and Paid Outs for the year. If
CASH POSITION gets dangerously low or negative, you will need to pump in more cash
to keep the operation afloat. Many profitable businesses have gone under because they
could not pay the bills while waiting for money to flow in. Your creditors do not care about
profit; they want to be paid with cash. Cash is the financial lifeblood of your business.

y.
the

GUIDELINES
GENERAL
GENERAL
Definition:
Definition: A
A cash
cash flow
flow projection
projection is
is aa forecast
forecast of
of cash
cash funds
funds aa business
business anticipates
anticipates receiving
receiving and
and paying
paying out
out
throughout
throughout the
the course
course of
of aa given
given time
time span,
span, and
and the
the anticipated
anticipated cash
cash position
position at
at specific
specific times
times during
during the
the period
period being
being
projected.
projected. [For
[For the
the purpose
purpose of
of this
this projection,
projection, cash
cash funds
funds are
are defined
defined as
as cash,
cash, cheques,
cheques, or
or money
money order,
order, paid
paid out
out or
or
received.]
received.]
Objective:
Objective: The
The purpose
purpose of
of preparing
preparing aa cash
cash flow
flow projection
projection is
is to
to determine
determine shortages
shortages or
or excesses
excesses in
in cash
cash from
from that
that
necessary
necessary to
to operate
operate the
the business.
business. IfIf cash
cash shortages
shortages are
are revealed
revealed in
in the
the project,
project, financial
financial plans
plans must
must be
be altered
altered to
to
provide
provide more
more cash
cash until
until aa proper
proper cash
cash flow
flow balance
balance is
is obtained.
obtained. For
For example,
example, more
more owner
owner cash,
cash, loans,
loans, increased
increased
selling
selling prices
prices of
of products,
products, or
or less
less credit
credit sales
sales to
to customers
customers will
will provide
provide more
more cash
cash to
to the
the business.
business. Ways
Ways to
to reduce
reduce
the
the amount
amount of
of cash
cash paid
paid out
out includes
includes having
having less
less inventory,
inventory, reducing
reducing purchases
purchases of
of equipment
equipment or
or other
other fixed
fixed assets,
assets, or
or
eliminating
eliminating some
some operating
operating expenses.
expenses. IfIf excesses
excesses of
of cash
cash are
are revealed,
revealed, itit might
might indicated
indicated excessive
excessive borrowing
borrowing or
or idle
idle
money
money that
that could
could be
be used
used more
more effectively.
effectively. The
The objective
objective is
is to
to finally
finally develop
develop aa plan
plan which,
which, ifif followed,
followed, will
will provide
provide aa
well-managed
well-managed flow
flow of
of cash.
cash.
The
The Spreadsheet:
Spreadsheet: The
The cash
cash flow
flow projection
projection worksheet
worksheet in
in this
this file
file provides
provides aa systematic
systematic method
method of
of recording
recording
estimates
estimates of
of cash
cash receipts
receipts and
and expenditures,
expenditures, which
which can
can be
be compared
compared with
with actual
actual receipts
receipts and
and expenditures
expenditures as
as they
they
become
become known.
known. The
The entries
entries listed
listed in
in the
the spreadsheet
spreadsheet will
will not
not necessarily
necessarily apply
apply to
to every
every business,
business, and
and some
some entries
entries
may
may not
not be
be included
included which
which would
would be
be pertinent
pertinent to
to specific
specific businesses.
businesses. ItIt is
is suggested,
suggested, therefore,
therefore, that
that you
you adapt
adapt the
the
spreadsheet
spreadsheet to
to your
your business,
business, with
with appropriate
appropriate changes
changes in
in the
the entries
entries as
as required.
required. Before
Before the
the cash
cash flow
flow projection
projection
can
can be
be completed
completed and
and aa pricing
pricing structure
structure established,
established, itit is
is necessary
necessary to
to know
know or
or to
to estimate
estimate various
various elements
elements of
of the
the
business,
business, for
for example:
example:
-- What
What are
are the
the direct
direct costs
costs of
of the
the product
product or
or services
services per
per unit?
unit?
-- What
What are
are the
the monthly
monthly or
or yearly
yearly costs
costs of
of the
the operation?
operation?
-- What
What is
is the
the sales
sales price
price per
per unit
unit of
of the
the product
product or
or service?
service? Determine
Determine that
that the
the pricing
pricing structure
structure provides
provides this
this business
business
with
with reasonable
reasonable breakeven
breakeven goals
goals [including
[including aa reasonable
reasonable net
net profit]
profit] when
when conservative
conservative sales
sales goals
goals are
are met.
met.
-- What
What are
are the
the available
available sources
sources of
of cash,
cash, other
other than
than income
income from
from sales;
sales; for
for example,
example, loans,
loans, equity
equity capital,
capital, rent,
rent, or
or
other
other sources?
sources?
Procedure:
Procedure: Most
Most of
of the
the entries
entries for
for the
the cash
cash flow
flow spreadsheet
spreadsheet are
are self-explanatory;
self-explanatory; however,
however, the
the following
following
suggestions
suggestions are
are offered
offered to
to simplify
simplify the
the procedure:
procedure:
a)
a) IfIf this
this is
is aa new
new business,
business, or
or an
an existing
existing business
business undergoing
undergoing significant
significant changes
changes or
or alterations,
alterations, the
the cash
cash flow
flow part
part
of
of the
the column
column marked
marked "Pre-start-up
"Pre-start-up Position"
Position" should
should be
be completed.
completed. [Fill
[Fill in
in appropriate
appropriate blanks
blanks only.]
only.] Costs
Costs involved
involved
here
here are,
are, for
for example,
example, rent,
rent, telephone,
telephone, and
and utilities
utilities deposits
deposits before
before the
the business
business is
is actually
actually open.
open. Other
Other items
items might
might
be
be equipment
equipment purchases,
purchases, alterations,
alterations, the
the owner's
owner's cash
cash injection,
injection, and
and cash
cash from
from loans
loans received
received before
before actual
actual
operations
operations begin.
begin.
b)
b) Next
Next fill
fill in
in the
the pre-start-up
pre-start-up position
position of
of the
the essential
essential operating
operating data
data [non-cash
[non-cash flow
flow information],
information], where
where applicable.
applicable.
c)
c) Complete
Complete the
the spreadsheet
spreadsheet tt considering
considering the
the proposed
proposed contents
contents for
for each
each entry,
entry, given
given in
in the
the notes
notes provided
provided in
in the
the
worksheet.
worksheet.

Analysis
Analysis
a)
a) The
The cash
cash position
position at
at the
the end
end of
of each
each month
month should
should be
be adequate
adequate to
to meet
meet the
the cash
cash requirements
requirements for
for the
the following
following
month.
month. IfIf too
too little
little cash,
cash, then
then additional
additional cash
cash will
will have
have to
to be
be injected
injected or
or cash
cash paid
paid out
out must
must be
be reduced.
reduced. IfIf there
there is
is too
too
much
much cash
cash on
on hand,
hand, this
this money
money is
is not
not working
working for
for your
your business.
business.
b)
b) The
The cash
cash flow
flow projection,
projection, the
the profit
profit and
and loss
loss projection,
projection, the
the breakeven
breakeven analysis,
analysis, and
and good
good cost
cost control
control information
information
are
are tools
tools which,
which, ifif used
used properly,
properly, will
will be
be useful
useful in
in making
making decisions
decisions that
that can
can increase
increase profits
profits to
to insure
insure success.
success.
c)
c) The
The projection
projection becomes
becomes more
more useful
useful when
when the
the estimated
estimated information
information can
can be
be compared
compared with
with actual
actual information
information as
as
itit develops.
develops. ItIt is
is important
important to
to follow
follow through
through and
and complete
complete the
the actual
actual columns
columns as
as the
the information
information becomes
becomes available.
available.

Analysis
Analysis
a)
a) The
The cash
cash position
position at
at the
the end
end of
of each
each month
month should
should be
be adequate
adequate to
to meet
meet the
the cash
cash requirements
requirements for
for the
the following
following
month.
month. IfIf too
too little
little cash,
cash, then
then additional
additional cash
cash will
will have
have to
to be
be injected
injected or
or cash
cash paid
paid out
out must
must be
be reduced.
reduced. IfIf there
there is
is too
too
much
much cash
cash on
on hand,
hand, this
this money
money is
is not
not working
working for
for your
your business.
business.
b)
b) The
The cash
cash flow
flow projection,
projection, the
the profit
profit and
and loss
loss projection,
projection, the
the breakeven
breakeven analysis,
analysis, and
and good
good cost
cost control
control information
information
are
are tools
tools which,
which, ifif used
used properly,
properly, will
will be
be useful
useful in
in making
making decisions
decisions that
that can
can increase
increase profits
profits to
to insure
insure success.
success.
c)
c) The
The projection
projection becomes
becomes more
more useful
useful when
when the
the estimated
estimated information
information can
can be
be compared
compared with
with actual
actual information
information as
as
itit develops.
develops. ItIt is
is important
important to
to follow
follow through
through and
and complete
complete the
the actual
actual columns
columns as
as the
the information
information becomes
becomes available.
available.
Utilise
Utilise the
the cash
cash flow
flow projection
projection to
to assist
assist in
in setting
setting new
new goals
goals and
and planning
planning operations
operations for
for more
more profit.
profit. A
A suggested
suggested
way
way to
to do
do this
this is
is to
to enter
enter actual
actual cash
cash receipt
receipt amounts
amounts and
and cash
cash paid
paid out
out amounts
amounts in
in the
the actual
actual spreadsheet
spreadsheet included
included
in
in this
this file.
file.

These
These guidelines
guidelines are
are adapted
adapted from
from aa similar
similar cash
cash flow
flow projection
projection spreadsheet
spreadsheet published
published by
by the
the site
site businesslink.gov.uk
businesslink.gov.uk

gg and
and paying
paying out
out
ss during
during the
the period
period being
being
money
money order,
order, paid
paid out
out or
or

esses in
cesses
in cash
cash from
from that
that
ns must
ans
must be
be altered
altered to
to
sh,
sh, loans,
loans, increased
increased
ness.
ness. Ways
Ways to
to reduce
reduce
tt or
or other
other fixed
fixed assets,
assets, or
or
cessive borrowing
xcessive
borrowing or
or idle
idle
followed,
followed, will
will provide
provide aa

hod
hod of
of recording
recording
dd expenditures
expenditures as
as they
they
ness,
ness, and
and some
some entries
entries
re,
re, that
that you
you adapt
adapt the
the
ee cash
cash flow
flow projection
projection
various
various elements
elements of
of the
the

ure
ure provides
provides this
this business
business
goals
goals are
are met.
met.
equity
equity capital,
capital, rent,
rent, or
or

, the
the following
following

ions, the
tions,
the cash
cash flow
flow part
part
ss only.]
only.] Costs
Costs involved
involved
pen.
pen. Other
Other items
items might
might
ed
ed before
before actual
actual

ion],
ion], where
where applicable.
applicable.
ee notes
notes provided
provided in
in the
the

ments
ments for
for the
the following
following
ee reduced.
reduced. IfIf there
there is
is too
too

cost
cost control
control information
information
oo insure
insure success.
success.

th actual
ith
actual information
information as
as
tion
tion becomes
becomes available.
available.

ments
ments for
for the
the following
following
ee reduced.
reduced. IfIf there
there is
is too
too

cost
cost control
control information
information
oo insure
insure success.
success.

th actual
ith
actual information
information as
as
tion
tion becomes
becomes available.
available.
ee profit.
profit. A
A suggested
suggested
al
al spreadsheet
spreadsheet included
included

nesslink.gov.uk
nesslink.gov.uk

Cash Flow (12 months)

Pre-Startup
Cash on Hand (beginning of
month)

1.

2.

Enter Company Name Here

Jan 07

Feb 07

Mar 07

Apr 07

May 07

Jun 07

Jul 07

Fiscal Year Begins:

Aug 07

Sep 07

Oct 07

Nov 07

Jan 07
Total (end
of year)

Dec 07

INCOME
a)

Cash Sales

b)

Other income (credit accounts)

b)

Loan / other cash injections

3.

TOTAL CASH RECEIPTS

4.

Total Cash Available (before

cash out)

5.

CASH PAID OUT

a)

Purchases (goods for sale)

Purchases (specify)
Purchases (specify)

b)

Wages (exact withdrawal)

d)

Holiday pay

e)

Tax deduction (on wages)

f)

Payroll tax

g)

External services

h)

Supplies (office & oper.)

i)

Repairs & maintenance

j)

Marketing, advertising

k)

Car, delivery & travel

l)

Accounting & legal

m) Rent
n)

Telephone, postal expenses

o)

Utilities

p)

Insurance

q)

Taxes (real estate, etc.)

r)

Interest

s)

VAT

t)

Other expenses (specify)

Other (specify)
Other (specify)

u)

Miscellaneous
SUBTOTAL

v)

Loan down payment

w) Capital purchase (specify)

x)

Other startup costs

y)

Reserve and/or Escrow

z)

Owners' Withdrawal

6.

TOTAL CASH PAID OUT

7.

Cash Position (end of month)

ESSENTIAL OPERATING DATA (non cash flow information)

Sales Volume
Accounts Receivable
Bad Debt (end of month)
Inventory on hand (eom)
Accounts Payable (eom)
Depreciation

Cash flow Chart

Cash Flow (12 Months)

1
1
1
1
1
1
0
0
0
0
0
Jan 07

Feb 07

Mar 07

Apr 07

May 07

TOTAL CASH RECEIPTS

Jun 07

Jul 07

Aug 07

TOTAL CASH PAID OUT

Page 10

Sep 07

Oct 07

Nov 07

Cash Position (end of month)

Dec 07