Cash Flow Statement free excel template is a ready-to-use template to prepare a detailed cash flow of the company for a specific period.
This template provides the cash flow from operating, investing, and financing activities.
What Is A Cash Flow Statement?
Cash Flow Statement is a financial statement that reports the cash generated and spent during a period. It is one of the main financial statements.
In other words, this statement allows you to understand how your company operations run. It gives you an overview of where the money is coming from, and how it is spent.
You can decide the period for this statement. It can be either monthly, quarterly, half-yearly, or yearly. It can be more in some cases as per the requirement.
Reviewing this helps companies in taking crucial and big economic decisions.
Components Of A Cash Flow Statement
A Cash flow statement consists of the company’s inflow and outflow of cash. It covers 3 categories of activities: Operations, Investing, and Financial.
Operating Activities
Operating activities are the main sources of cash inflow and outflow. It depicts the cash earned and spent on regular business activities. It includes activities such as sales receipts, merchandise purchases, salaries, and other operating expenses.
Investing Activities
Cash flow from investing activities includes inflow and outflow of cash in investing activities. It can include assets, equipment, acquisitions, and equity. Usually, they are the long-term assets of the company’s balance sheet.
Financial Activities
The Financial activities of the cash flow statement display the inflow and outflow of cash from financing activities. These involve repayment of loans, stock issuance and dividends, equity buy-back programs. Usually, these items are the long term liabilities on a company’s Balance Sheet.
Methods Of Cash Flows
There are two types of cash flows: Direct and Indirect.
Direct Cash Flow Method
The direct cash flow method involves adding up all the cash receipts and payments of a business. These include payments to suppliers, receipts from customers, and salaries paid to employees. In this method, the opening and closing balance of various accounting heads.
Indirect Cash Flow Method
In the Indirect cash flow method, cash flow from operating activities is derived. You can find this as Net income on your income statement.
Usually, the net income on the income statement is prepared on an accrual basis. Hence, one needs to make adjustments to find the EBIT (earnings before interest and taxes).
We have created a simple and easy to use Cash Flow Statement with predefined formulas. Just enter the required data and get an overview of your company’s cash flows.
How to download and use Cash flow statement free Excel template ?
To use this free Cash flow statement free excel template, you should have Microsoft Office/ Microsoft Excel installed in your system. After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software. Once extracted, you can open the file using Excel and start entering data or customizing the template.
