How to Create a Cash Flow Statement

A cash flow statement could very well be the most important bookkeeping tool in the business owners arsenal. Cash flow statements can quickly show the sources and uses of income.Below, you will find the basic sections that must be included to have an effective cash flow statement.

Instructions

1. There are basically 3 crutial parts to a successful cash flow statement.Of course, you need to first need to find your true account balance. This means balancing your general ledger and bringing all other account ledgers up-to-date.

2. Next, you'll need to find your projected cash sources, this will include all sources related to the business.

3. Projected cash uses, which include fixed (rent, loan payments, insurance, etc.) and variable (food, gas, clothing, etc.) expenses.

4. Finally, by adding your projected cash sources and projected cash uses, you will find an average cash flow.

Resources

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