The term cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a business.
The purpose of a cash flow statement is to provide a detailed picture of what happened to your business’s cash during a specified period, known as the accounting period. It demonstrates your business ability to operate in the short and long term, based on how much cash is flowing into and out of the business. Effectively managing cash flow is vital to the running of your business.
It’s important to note that cash flow is different from Profit & Loss Statement, which is why a cash flow statement is often interpreted together with other financial documents, such as a balance sheet and income statement.
We have prepared for you a template "BUSINESS CASH FLOW STATEMENT" which you can download FREE of charge.
This free monthly cash flow spreadsheet template will help you analise your cash in-flows and out-flows, so you can improve your finance and make better decitions to the needs of your business.