Simple Cash Flow Statement Template (In Excel)

Written by Dave Lavinsky

cash flow statement template

A cash flow statement is a financial statement that shows how changes in cash flow are related to the company’s activities over a specific period of time. These activities include the company’s operations, investments, and financing. However, this statement does not include non-cash items such as depreciation and amortization.

It’s important for business owners to have an accurate understanding of their cash flow because it provides them with the information they need to manage their finances effectively. Cash flow statements are especially helpful for small businesses that might not have access to other forms of financial statements, such as income statements and balance sheets. Therefore, for many businesses, a cash flow statement is an essential component of a business plan and helps to provide a solid foundation for decision-making.


What is a Pro Forma Cash Flow Statement?

A pro forma cash flow statement is a financial forecast that estimates the future cash flow of a business. It is based on certain assumptions and can help provide an indication of how much money the company may have available in the future. Pro forma statements are typically created using historical data to predict the expected future cash flow position.

This type of statement projects potential cash flow activities, such as revenues, expenses, investments, and financing activities. By looking at these variables in terms of their timing and dollar amount, it helps to provide insight into how much money a business might need to run its operations over a given period of time. Unlike other financial statements, such as income and balance sheets, pro forma cash flow statements do not include non-cash items like depreciation or amortization.

Pro forma cash flow statements can be useful for making informed decisions about how best to manage the company’s finances. For example, when allocating funds for large investments or expansions, a pro forma statement can give an estimate of what kind of impact it could have on the cash flow analysis of the business over time. Additionally, it can help small businesses plan for economic downturns by providing them with an estimate of when they should start conserving their finances before any trouble hits. This type of planning is essential for any business that wants to remain afloat during tough times.


Why You Need a Cash Flow Statement For Your Business

There are several reasons why a statement of cash flows is essential for your business and should be included in your business plan:

  • Tracks cash inflows and outflows: It helps to track how much cash flows into and out of the company. This information can be used to understand the company’s financial health and can help identify any potential problems or areas for improvement.
  • Analyzes cash flow trends: It’s important to analyze the historical data from a cash flow statement in order to identify any patterns or trends. This analysis can then be used to plan for any future expenses or investing activities that may be necessary.
  • Improves budgeting: By creating a cash flow statement, businesses can better understand their current financial situation and use this knowledge to create more accurate budgets for future projects or activities.
  • Shows investors how well the business is doing: A cash flow statement can be used to show potential investors how well the company is doing financially. This information is essential for any investor who wants to make an informed decision about investing in the company. 


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Components of a Simple Small Business Cash Flow Statement

A basic small business cash flow analysis typically includes three main sections:

Cash Flow From Operating Activities

This section focuses on the cash that is generated from the business’s core operations. It should include information such as sales, operating expenses, taxes paid, and any other activities for the period.

Cash Flow From Investing Activities

This section tracks any investments made by the company – such as purchases of equipment or property – and will also include any returns from those investments.

Cash Flow From Financing Activities

This section will track any financing activities in which a business engages. It could include loan payments or interest payments as well as proceeds from capital raises or debt offerings.


Download our cash flow statement template that will help you create your own cash flow analysis.


How To Create a Simple Cash Flow Statement For Small Business

Now that you know all the essential components of a simple cash flow statement, you are ready to create your own. Below are the steps necessary to create a cash flow statement template in Excel:

  1. Create A New Workbook: Open a new Excel workbook and create tabs for “Operating Activities,” “Investing Activities,” and “Financing Activities.”
  2. Choose Your Period: Decide which particular period you want to track and enter that information in the header of each tab (e.g., 1/1/22-6/30/22).
  3. Gather Your Data: Make sure you have all your records of transactions for the period on hand. These can include bank and credit card statements, invoices, loan documents, etc.
  4. Enter In All Your Revenue & Expenses: Now, you need to enter your revenues and operating expenses into the appropriate tabs. Make sure you include any interest payments or loan repayments along with any other transactions that relate to the cash flow of your business.
  5. Summarize & Calculate: Once all the data is entered, you can now calculate the net cash flow for each tab. This will give you a total figure for your cash flow statement. To calculate cash flow for each tab, add up all the income and subtract all the expenses. Input this formula into the final cell of each tab to calculate the total.
  6. Save & Review: After saving your cash flow analysis statement template in Excel, review it to make sure all the figures are accurate. Once you are satisfied with the results, you can save the workbook as a template and use it for future cash flow projections.


Other Financial Statements

The cash flow statement is not the only financial statement that businesses need. Other important documents include the income statement and balance sheet.

The income statement shows a company’s revenues and expenses over a period of time. This can include anything from operational expenses to marketing costs. It also gives you a detailed view of how the business is performing and where it can make improvements. Unlike a cash flow statement, an income statement does not focus on the movement of cash. Rather, it tracks the business’s income and expenses.

The balance sheet is a snapshot of a company’s financial position at a given point in time. It is divided into three sections: assets, shareholders’ equity, and liabilities. The Assets include anything the company owns, such as equipment or accounts receivable. Shareholders’ equity is the money attributable to the shareholders of the company and is always equal to the value of the assets minus liabilities. Liabilities are any debts or obligations that the business owes. 

The balance sheet differs from the cash flow statement in that it does not track the movement of money but instead shows the company’s financial position at a specific point in time.


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