Cash flow statement

A cash flow statement can be one of the most important tools in managing your finances. It tracks all the money flowing in and out of your business and can reveal payment cycles or seasonal trends that require additional cash to cover payments. This cycle or pattern can help you plan ahead and make sure you always have money to cover your payments. See our Business finances topic for more information on managing and seeking finance.

On your cash flow statement, list all your incoming and outgoing cash items with the dollar amount for the next 12 months. For each month list the items and total the figures under the headings Cash incoming and Cash outgoing. Use the outline below as your starting point for your cash flow statement for each month:

1. Opening balance (in the first month this will be your opening bank balance. In subsequent months this figure will be the closing balance from the previous month)

2. Cash incoming

  • Sales

  • Asset sales

  • Debtor receipts

  • Other income

  • Total incoming (Add up all cash incoming items above)

3. Cash outgoing

  • Purchases (Stock etc)

  • Accountant fees

  • Solicitor fees

  • Advertising & marketing

  • Bank fees & charges

  • Interest paid

  • Credit card fees

  • Utilities (electricity, gas, water)

  • Telephone

  • Lease/loan payments

  • Rent & rates

  • Motor vehicle expenses

  • Repairs & maintenance

  • Stationery & printing

  • Membership & affiliation fees

  • Licensing

  • Insurance

  • Superannuation

  • Income tax

  • Wages (including PAYG)

4. Total outgoing (Add up all cash outgoing items above)

5. Monthly cash balance (Calculate Total incoming minus Total outgoing)

6. Closing balance (Calculate Opening balance plus Total incoming minus Total outgoing)

Whether you've already started or intending to start, you'll need to fill in actual or estimated figures against each item. If using estimated costs, you'll need to label them clearly. When preparing a cash flow statement, ensure you also clearly state whether your figures are GST inclusive or exclusive.

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