Cash Flow Calculator, an online calculator for calculating operating cash inflows and outflows is extremely helpful to business owners in determining the operating profit or loss of a business. It is capable of computing for both annual and monthly figures and is equipped with a multitude of useful features. In order to obtain the most accurate figures, one should consider entering the figures manually. Nevertheless, this will give a very basic idea of how the operation works.
The first step in using a cash flow calculator is to select the type of calculation that you want to perform. The various calculators available are: monthly, quarterly, annually or a combination of monthly, quarterly, semi-annually or yearly figures. Once the type of calculation has been selected, it will then be possible to choose the date range that you would like the results to be presented. If the desired result for the calculation is for annual figures, then the date range can be any time within the year, whereas if the aim is to obtain monthly figures, then the date range can be any time within that month.
Annual Cash Flow Calculator
The next thing that you need to do is to enter the starting balance for the calculation of the operating profit or loss. For annual cash flow statements, the starting balance can be the actual amount of money that was received or spent during the month, or it can be the figure based on the receivable and inventory balances entered in the cash inflows section of the annual cash flow calculator. In the case of a monthly statement, the starting balance can also be the net cash inflows or outflows less the net cash inflows or outflows. To determine the interest rate that will be used for the calculation, it is required to enter the starting balance as well as the net cash inflows or outflows in the net cash flow statement section. This gives the owner a precise idea of what type of interest rate will be applied for the account.
The third item that needs to be entered is the gross selling price for the month. This is done in the same way as the previous section, where the gross selling price is being entered. The only difference here is that the gross selling price here should not include the cost of goods sold in addition to the gross selling price. Otherwise, the net cash flow statement will end up giving the wrong impression of the business’s net profit or loss.
Download Annual Cash Flow Calculator Template
The fourth item that is required in the Cash Flow Calculator template is the net cash inflows or outflows. This is a percentage of the total cash inflows or outflows that are entered during the month. For the most accurate results, the net cash flow should be greater than zero, otherwise the result can be misleading.
Related Topics :
- Uneven Cash Flow Calculator
- Simple Cash Flow Statement for Small Business
- Cash Flow Spreadsheets Template
The last item that needs to be added is the end balance. This is the final balance line for the year. It should be the exact end result that was reached at the end of the last month. The cash inflows or outflows should be zero dollars, otherwise the entire statement will not be accurate. The annual cash flow calculator can truly make things easier for small business owners and financial managers who need to come up with quick and accurate results for their business’s financial records.