Cash Flow Report Creation

Identify and examine cash revenue sources from where you have received cash during the periods that will be covered by your cash flow statement.

Similarly, identify and analyze all types of cash disbursements for the accounting periods covered and make a list of it.

Create and name the worksheet simply by posting the following:

• First row of the first column, Name of the Company.   Example: RDP Trading Co., Inc. 
• Second row of the first column, The period covered. Example: 1st Quarter Cash Flow Report.
• Fourth row of the second column, The first month Opening Cash Balance. Example: 1st Month
• Fourth row of the third column, The second month opening Cash Balance. Example: 2nd Month 
• Fourth row of the 4th column, The third month Opening Cash Balance. Example: 3rd Month

Example:

To compute for the Total Cash Receipts:

Add the Beginning Cash Balance to the Sub-Total Cash Receipts during the first month of the 1st quarter cash flow as shown below.

To compute for the Total Cash Disbursements:

Sum up all itemized Cash Disbursements.

Example:

• Use the Lists of Sources of Cash Receipts and Disbursements to Label the Rows of the Spreadsheet.
• Group cash receipts and disbursements into two, label the first group as cash receipts while label the 2nd group as cash disbursements.  Each group should have its own sub-total.
• The Net Cash Flow shall be posted in the final row for each period covered as illustrated below:

Verify all computations to obtain accurate calculations and save it in the computer and come up with a corresponding print-out.

The verification process involves double-checking the figures posted on the cash receipts and disbursements.  Checking the computations on arriving at the cash balances is another area of the verification process.

To compute for the Ending Cash balance:     .

Subtract the Total Cash Disbursements from the Total Cash Receipts during the period covered as shown below:

Example:

NOTE: 

The beginning cash balance of the first month of the 1st quarter cash flows statement may come from 'Cash On Hand and In Bank' for new business ventures.

Cash Flow Cycle: 

The resulting ending cash balance of the 1st month becomes the beginning cash balance of the 2nd month and so on...so forth.

To obtain Net Cash Flow:

Subtract the Total Amount of Disbursements during the quarterly period from the Total Amount of Cash Receipts during the same period.

Net Cash Flow represents the Final Ending Cash Balance of the accounting period covered, say 1st quarter cash flows statement so on...so forth.

Net Cash Flow, as the final ending cash balance of an accounting period covered (e.g. 1st quarter), becomes the Beginning Cash Balance of the next period or of the succeeding quarter (e.g. 2nd quarter).

Example:

Read more: http://www.ehow.com/how_5962173_calculate-net-cash-flows.html#ixzz31efkYedn

Gather the financial records needed for the preparation of cash flows statements.

• Bank Statements
• Opening and closing balance sheets or statements of financial positions for the beginning and closing accounting periods.
• Profit & Loss Statements for the current accounting period.
• Changes in stockholders’ equity statement during the current period.
• Cash flows statements during the previous accounting period.
• Major Financial transactions with significant impact in the enterprise during the current accounting period.

You can read this article for more information: http://www.accounting4management.com/bank_reconciliation_statement.htm