Basic Cash Flow Statement Template

Specify the time frame for the cash flow analysis. This task sets the foundation for the entire process. Consider factors such as the fiscal year, quarter, or specific months. How long will the analysis cover?

Gather all sources of income for the specified period. Think about all possible revenue streams that contribute to the cash flow. What are the various sources that generate income during this time frame?

Record all the expenses incurred during the specified period. This step involves identifying and documenting all outflows of cash, including overhead costs, salaries, and other expenses. What are the different expense categories that need to be considered?

Organize and classify the income sources and expenses according to different categories. Group similar income sources and expenses together to create a systematic analysis. How would you categorize the various income sources and expenses?

Compute the total income by summing up all the income sources for the specified period. This step helps in understanding the overall revenue generated during that period. Can you calculate the total income by adding up the different sources?

Calculate the total expenses by summing up all the expense categories for the specified period. This step provides an understanding of the overall costs incurred. Can you calculate the total expenses by adding up the different categories?

Subtract the total expenses from the total income to calculate the net income. This figure indicates the profitability of the business during the specified period. Can you calculate the net income by subtracting the expenses from the income?

Identify any non-cash expenses incurred during the specified period. Non-cash expenses refer to expenses that do not involve actual cash outflows such as depreciation or amortization. Can you identify and document any non-cash expenses?

Add the non-cash expenses to the net income to calculate the cash flow from operations. This adjustment provides a clearer picture of the cash flow generated by the business operations. Can you add the non-cash expenses back to the net income?

Identify and document all the investing activities undertaken during the specified period. Investing activities include purchases or sales of assets and investments. Can you identify and document all the investing activities?

Calculate the cash flow generated or used by investing activities. This step helps in analyzing the impact of investment decisions on cash flow. Can you calculate the cash flow from investing activities based on the documented activities?

Identify and document all the financing activities undertaken during the specified period. Financing activities include raising capital, paying off debt, or issuing dividends. Can you identify and document all the financing activities?

Calculate the cash flow generated or used by financing activities. This step helps in understanding the impact of financing decisions on cash flow. Can you calculate the cash flow from financing activities based on the documented activities?

Combine the cash flow from operations, investing activities, and financing activities to calculate the total cash flow. This figure represents the overall change in cash during the specified period. Can you calculate the total cash flow by combining the different cash flow components?

Compare the calculated total cash flow with the actual cash balance at the end of the specified period. This step helps in evaluating the accuracy of the cash flow analysis. Can you compare the calculated total cash flow with the actual cash balance?

Identify any discrepancies between the calculated total cash flow and the actual cash balance and investigate for potential errors or omissions. This step ensures the accuracy of the cash flow statement. Can you identify any discrepancies and investigate for potential errors?

Review the entire cash flow statement, including all calculations and supporting documentation. This step ensures the accuracy and completeness of the statement. Can you review and finalize the cash flow statement?

Share the finalized cash flow statement with relevant stakeholders, such as management, investors, or lenders. This step ensures transparency and provides valuable financial insights. Who are the relevant stakeholders to whom the statement should be distributed?