|
|
Examples Of Cash Flow Statements
Every business needs to maintain a cash flow statement which will indirectly help you in your budgeting and forecasting process. A cash flow statement is prepared on an excel sheet which shows your expenses and income. At the time of assessment you will have to place it before the concerned departments so that budgeting would be simple. |
Sponsored Links :
|
Any business would have to budget its expenses in such a way that will help them to stay in control no matter when any kind of risk arise. Even mere looking at the cash flow statement should enable you to answer few doubts that might arise in anybody’s mind. If the person is ready to come up with answers to his own questions, it should be understood that the cash flow statement is prepared appropriately.
A basic example of cash flow table can be as follows.
Cash Flow Example Statement
Statement For the Month Ended December 2010 |
|
Month 1 |
Month 2 |
Cash Receipts: |
|
|
Sales |
*********** |
|
Loans |
*********** |
|
Investments |
********** |
|
Total Receipts |
********** |
|
Disbursements: |
********** |
|
Salaries |
********** |
|
Advertising |
********** |
|
Insurance |
********* |
|
Other |
******** |
|
Total Disbursements |
******* |
|
Total Receipts (Less) |
*********** |
|
Disbursements (Grand Total) |
********** |
|
Every business person should understand the importance of such a statement for financial management. He or she would be in a position to guide and gage in what way the business should be carried forward. It is surely a complex statement but an overall experience of understanding them will help you to predict what you might expect in the next month or so. You can also then budget your expenses in such a way that future growth would be possible. The business can look out for expansion plans on basis of the monthly cash flow assessment. It can be prepared at any point of time depending on your business. Normally, small businesses do prepare it frequently. Some do it either quarterly or annually.
If you apply for any kind of loan for expansion, they would surely access the cash flow statements of different years to understand whether you would be in a position to repay any loan amount possible. It is absolutely compulsory on your part to make sure that the cash flow statements are prepared on time to meet the necessary accounting standards.
More Articles :
|
|
|
 |
| |
|
|
How To Common Size Cash Flow ?
 Common sizing is a process whereby you as a business person show components a rate that may be a percentage of all your assets and income just to give a common base. The percentage is calculated category wise. This gives an opportunity to everybody who would have to know the liabilities, trends, income at any given point of time. More..
|
|
Sponsored Links :
|
|
