Cash is king and so is the Simple Cash Flow Statement for small business. As a business owner, you want to know as much about your finances as possible. There are three financial statements you should be aware of: gross profit, net profit and net loss. These all include money that you make from sales of products or services to customers. The third statement, net loss, includes all of the money that your business loses such as salaries paid, goods bought, equipment sold, rental cars and more.
The income statement tells the story of how much money your business brings in. It is broken down into three different categories including income from equity and loans, income from property and purchases, and revenue. The most significant category of income statement data is revenue. This statement includes all money that’s generated from sales of products or services to customers. In addition, it includes revenue that comes in from loans used to purchase and develop products and services.
Simple Cash Flow Statement for Small Business
On the other hand, the income statement shows what your business gets from its customers. It lists the price of each product or service sold and whether the buyer is paying with a credit card. The statement will also show the amount of a business’s investment in assets and its current accounts payable. It will even list any assets owned by the business. A good portion of this data is included on the balance sheet and a Simple Cash Flow template can help you create an accurate analysis.
Another key aspect of a statement of cash flow is the operating expenses that your business incurs. This includes the cost of supplies, property taxes, payroll, marketing and advertising campaigns and more. You must determine the exact expenses associated with your business every month. In order to calculate these properly, you must have access to your owners’ statement and the records of previous years.
Download Simple Cash Flow Statement for Small Business excel template
If you run your own business, you need to understand the importance of a simple cash flow analysis for small business. By calculating all of the cash-flow factors for your business, you can ensure that your financing is working properly. You can avoid potential problems such as your business going out of business or having insufficient funds to operate. This can be very damaging to your business and your personal finances if necessary. By creating your own cash flow statement for a small business, you can quickly see whether you are able to make payments to vendors or lenders. This allows you to easily evaluate your financial situation and can allow you to make necessary changes if needed.
If you want to improve your small business’s cash flow, consider using a simple cash flow analysis for small business template. It can simplify the complex calculations involved so you can easily see where your business is or isn’t. This can prove very helpful for any business owner who needs to ensure that he or she has enough funding to stay afloat.