Do you already use a cash flow template in your business?
If not, download this cash flow template that my clients across sectors, stages, and scales use.
Download this template before you go any further in this hub because you’ll need it to implement my recommendations in this hub.
If you are not sure what a cash flow template is, read on to understand.
What Is a Cash Flow Template, and How Do You Use It?
A cash flow template is a spreadsheet where you put cash flow data of cash in and out to prepare a cash flow statement.
You create a monthly cash flow template and a weekly cash flow template.
A monthly cash flow template is used to create a 12-month cash flow statement, whereas the weekly cash flow template is used to record daily cash flow movement in Excel or Google Sheets.
Download a simple cash flow template by clicking here. It is free.
You can also use this template to prepare a cash flow budget and use it as a cash flow forecast template.
You don’t have to be good in excel or maths to use this cash flow template.
Here is a step-by-step process to use the cash flow template I have shared above.
How To Use a Monthly Cash Flow Statement Template To Prepare a Cash Flow Statement
If you struggle to capture all cash coming in and going out in one place and fail to get a bird’s eye view of your cash flow, then you’ll find this step-by-step process useful.
This is the exact process that I use to help my clients with a revenue range of £40k to £40m to prepare a monthly cash flow statement in their business.
Let’s dive in.
Step 1: Export Month-End Bank Transactions Into Excel.
Download your bank statement from your online banking portal as a CSV or excel file. You will see the cash in and cash out columns with opening and closing bank balances.
Download data from the banking portal and not from accounting software. Bank transactions are facts that happened in a particular month, whereas the data you pull from your accounting software may have unallocated, misallocated transactions.
Step 2: Organise cash inflow by receipt types and post in cash flow statement template
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Step 3: Organise cash outflow by payment types and post it in the cash flow statement template
Step 4: Post the opening bank balance in the cash flow statement template and compare the closing bank balance with the remaining cash balance.
By following these four steps, you will be able to organize your cash flow in one place and have a complete picture of what’s going on with your cash flow, just like in this example.
You can do this in less than 15 mins without the usual anxiety or hassle that comes with organizing your cash flow.
Once again, here’s the link to download this monthly cash flow statement template and make it your own.