Global Cash Flow Statement
Global cash flow combines your household budget with your business financials. This tool combines all sources of revenue for an individual or household across salary, fees, rental income, business income, and investment income to provide insight into someone’s complete financial life. After calculating all the sources of income, a global cash flow statement deducts all the necessary expenses, including both personal expenses like a mortgage and food, along with investments and business expenses. This “global” view of your financial life is the most complete assessment of your net income. Most investors make credit decisions based on global cash flow to ensure that the potential borrower is practicing prudent financial management in all aspects of personal and professional life.
The Significance of Global Cash Flow Statements
- Global Financial Clarity: Global cash flow statements offer a clear and consolidated view of an individual or family’s cash flow from operating, investing, and financing activities across all personal and business pursuits. This clarity empowers management to make informed decisions about resource allocation, investment opportunities, expansion plans, and financing strategies.
- Strategic Decision-Making: By analyzing global cash flow trends and patterns, you can identify areas of strength, opportunities for improvement, and potential risks associated with global operations. This analysis informs strategic decision-making, enabling companies to proactively manage their financial position and navigate global challenges effectively.
- Financial Health Assessment: Global cash flow statements provide a comprehensive assessment of an individual or family’s overall financial health and performance. They reveal the company's ability to generate cash from its operations, invest in growth opportunities, and meet its financial obligations.
- Investment: Healthy global cash flow statements exhibit success and discipline to investors, ensuring that you have the commitment, know-how, and experience to make more than you spend and spend less than you make, building income and wealth over time.
Ready to make your Global Cash Flow Statement?
Click below to download NewTown’s free template. 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.