Accounting Blog for Business
Posted by Janis Narvas
Jun 27, 2017 3:10:16 PM
You have probably heard more than once that in managing a business’ finances, cash is king. Cash flow management is crucial to the continued operations of your business: if you cannot achieve the timely payment of your suppliers and employees or collect payment from your customers on time, then you have a problem.
Even if you have a brilliant business model or extraordinary business acumen, cash flow management and forecasting should be done to guarantee your success. According to a US Bank study reported on Entrepreneur, about 82 percent of start-ups and small businesses fail to take off because of mismanaged cash flow.
Cash Flow Statements
One way to help you keep track of your growing company’s money is by preparing cash flow statements. As a business owner, you must know that your cash flow statement has many uses has many uses. (Read here to find more tips to manage your cash flow better.)
This indispensable business tool can be used to help you:
- Manage your financial operations and cash flow for your small business.
- Identify key cash drivers and in the process, make better strategic business decisions.
- Get an accurate picture of your business’ financial position.
It may sound daunting at first, but creating cash flow statements can actually be relatively simple with the right tools. In a nutshell, you simply need to subtract your business cash outflows from your inflows to get a snapshot of your cash at any given time. You can download an accounting software package or, if you are more comfortable with spreadsheets, use templates that can do the job.
Manage your Cash Flow Better with These Tools
Choose from these cash flow statement templates to find one that can help you better manage your business’ finances.
- Cash flow statement template by Microsoft Office – This 12-month template includes sparklines to show trends and conditional formatting to help you easily find data.
- Cash flow guide by QuickBooks – This customizable template can be used by any kind of business. This also includes a sample cash flow statement that you can use as a guide.
- Cash flow worksheet by SME Toolkit – This template will help you track your cash inflows and outflows for each month.
Do you want to learn how you can leverage your financial information and improve your business’ cash management? Schedule a consultation with us today and let our finance and accounting specialists add value to your business.