Manage your finances effectively with the Simple Cash Flow Statement Template, designed to track, compute, and analyze your business's cash flow.
1
Gather data on total cash receipts
2
Compute total cash paid out for expenses
3
Calculate net income before tax
4
Compute income tax paid
5
Understand changes in inventory,
6
Examine changes in accounts receivables and payables
7
Calculate net cash flow from operating activities
8
Compute net cash flow from investing activities
9
Calculate net cash flow from financing activities
10
Approval: Finance Head Review
11
Calculate net increase or decrease in cash
12
Verify with the beginning cash balance
13
Reconcile the ending cash balance
14
Prepare the final cash flow statement
15
Finalize and record the cash flow statement
Gather data on total cash receipts
In this task, you will collect all the necessary information on the total cash receipts. This includes any cash received from sales, loans, or other sources. It is important to ensure that all cash received is accurately recorded and accounted for. What methods or tools will you use to gather this data? Are there any challenges that you anticipate?
Compute total cash paid out for expenses
This task involves calculating the total amount of cash paid out for various expenses. You will need to consider items such as rent, salaries, utilities, and any other cash expenses. How will you calculate the total amount? Are there any specific expenses that need to be considered?
Calculate net income before tax
By subtracting the total cash paid out for expenses from the total cash receipts, you can calculate the net income before tax. This figure represents the financial performance of the business. How will you calculate the net income before tax? Are there any specific adjustments or considerations to keep in mind?
Compute income tax paid
In order to calculate the net income after tax, you will need to determine the amount of income tax paid. This includes any corporate taxes or other tax liabilities. How will you calculate the income tax paid? Are there any specific tax regulations or requirements to consider?
Understand changes in inventory,
This task involves analyzing the changes in inventory levels during the specified period. You will need to identify any increases or decreases in inventory and the corresponding impact on cash flow. How will you gather the necessary data on inventory changes? Are there any challenges or specific inventory valuation methods to consider?
Examine changes in accounts receivables and payables
In this task, you will assess the changes in accounts receivables and payables. It is important to analyze any changes in the amounts owed to the business (accounts receivables) and the amounts owed by the business (accounts payables). How will you gather the necessary data on accounts receivables and payables? Are there any challenges or specific accounting practices to consider?
Calculate net cash flow from operating activities
By considering the net income before tax, changes in inventory, and changes in accounts receivables and payables, you can calculate the net cash flow from operating activities. This figure represents the cash generated or used in the day-to-day operations of the business. How will you calculate the net cash flow from operating activities? Are there any adjustments or specific accounting principles to consider?
Compute net cash flow from investing activities
This task involves calculating the net cash flow from investing activities, which includes any cash flows related to the purchase or sale of long-term assets such as property, plant, and equipment, or investments in other businesses. How will you calculate the net cash flow from investing activities? Are there any specific investments or dispositions to consider?
Calculate net cash flow from financing activities
By considering any cash flows related to financing, such as loans or equity investments, you can calculate the net cash flow from financing activities. How will you calculate the net cash flow from financing activities? Are there any specific financing activities or sources of capital to consider?
Approval: Finance Head Review
Will be submitted for approval:
Calculate net cash flow from operating activities
Will be submitted
Compute net cash flow from investing activities
Will be submitted
Calculate net cash flow from financing activities
Will be submitted
Calculate net increase or decrease in cash
By summing the net cash flows from operating activities, investing activities, and financing activities, you can determine the net increase or decrease in cash for the specified period. How will you calculate the net increase or decrease in cash? Are there any specific adjustments or considerations to keep in mind?
Verify with the beginning cash balance
In order to ensure the accuracy of the cash flow statement, it is important to verify the ending balance of the previous period with the beginning cash balance of the current period. How will you verify the beginning cash balance? Are there any specific reconciliation procedures or supporting documents to consider?
Reconcile the ending cash balance
By reconciling the net increase or decrease in cash with the beginning cash balance, you can determine the ending cash balance for the specified period. How will you reconcile the ending cash balance? Are there any specific adjustments or considerations to keep in mind?
Prepare the final cash flow statement
In this task, you will compile all the calculated figures and prepare the final cash flow statement. This statement provides a summary of the cash inflows and outflows for the specified period and helps to analyze the cash position of the business. How will you prepare the final cash flow statement? Are there any specific formatting or presentation requirements to consider?
Finalize and record the cash flow statement
In this final task, you will review and finalize the cash flow statement. Once finalized, you can record the statement for future reference or reporting purposes. How will you review and finalize the cash flow statement? Are there any specific review procedures or approval processes to follow?
