Business Cash Flow Statement

A business cash flow statement is simply a budget for your business that provides a comprehensive overview of a company's income and expenses during a specific period, typically a month or a year.

The Significance of Business Cash Flow Statements

  1. Test a Concept: So you’ve got the next big idea in business. A business cash flow statement is the first step to ensure that your idea can make money, and enough of it to justify the blood, sweat, tears, and cash you will pour into it.
  2. Outside Investment: A business cash flow statement is the most important key to enticing outside investments such as loans or equity investments. Even if you’re asking friends and family, every investor wants to know how your idea will generate the cash to pay them back and a business cash flow statement is how you show them.
  3. Financial Health Assessment: The old adage is you can’t manage what you don’t measure. Businesses must take in more money than they spend to survive. Business cash flow statements serve as a window into a company's financial health, revealing its ability to generate cash from its operations, invest in growth opportunities, and meet its financial obligations.
  4. Strategic Decision-Making: Cash flow statements inform strategic decisions related to where to spend money. They provide a basis for evaluating the financial feasibility of expansion plans, mergers, and acquisitions.
  5. Financial Performance Benchmarking: Comparing cash flow statements with industry benchmarks can assess a company's financial performance relative to its peers.

The Components of Business Cash Flow Statements

  1. Income: This section outlines the cash generated from the company's primary business operations. Our templates are set up by industry to help you generate income estimates specific to downtown Macon.  .
  2. Expenses: Using real-world data from actual downtown businesses, NewTown estimated the expenses your business will incur in dozens of categories. Our template allows you to work line-by-line to make sure you won’t have any surprise expenses that derail your plans.
  3. Net Cash Flow: Net cash flow is calculated by summing up the income from operating, investing, and financing activities and subtracting the expenses that were required to generate this income. A positive net cash flow indicates that the company generated more cash than it used, while a negative net cash flow suggests the opposite.

Ready to make your Business Cash Flow Statement?

Click below to download NewTown’s free templates. For Google documents, when you click the button, you will be prompted to make a copy. Once you make a copy, the sheet will be added to your Google Drive to edit freely.

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