Best 3+ Cash Flow Statement Template Format PDF

In financial accounting Cash Flow Statement Template is also known as statement of cash flows, cash means money in the form of rupees, dollars, coins etc. flow means it can be out- flow or in- flow, and statement means which records the flows of the cash, flow of the cash means incoming and out- going.

So, any statement which shows flow of the cash is called cash flow statement. So, these flows can be two types either inflow or out- flow. Inflow means income of cash to the company, out- flow means out going of cash from the company. In other words, we can say it as receipts and payments. Receipts are inflow of cash and payments are out- flow of cash.

Cash Flow Statement Template

DIFFERENCE BETWEEN CASH BOOK AND CASH FLOW STATEMENT?

In cash book all receipts keep in debit side and payments keep in credit side, cash flow statement is compressed cash book. Similarities between them are both are made for particular period of time, both statements contain sonly cash transactions, in cash book each and every transaction note date wise, in cash flow statement all cash transactions are grouped in different activities.

Cash flow statements are grouped into three activities. They are:

  • Operating activities.
  • Investing activities.
  • Financial activities.
Cash Flow Statement Template
Cash Flow Statement Template

Personal Cash Flow Excel Free Download

Whether it is receipt or payments of the company they fall in one of the activities either investing or operating or financial activity. In business terms cash means not only coins and notes, but also include bank balance, cash equivalent (all the marketable investments that can be sold any movement without any significant loss). There is no difference between cash flows and cash equivalents.

Cash also include demand deposits (you have invested some amount it can be taken in any movement), some companies invest surpluses means invested money outside the company. The activities that records the movement between cash and cash flow equivalent, that are not recorded in cash flow statement.

The things which are recorded in cash books are for example, sell marketable investments (if you sold and get hard cash are the type of marketable investments), but this type of statements is not recorded in cash flow statement.

Personal Cash Flow Statement Excel Free Download
Personal Cash Flow Statement Excel Free Download

Simple Cash Flow Statement Direct Method

Use of cash flow statement:

  • Tool to handle cash management.
  • Important in decision making.
  • Transactions are grouped, it doesn’t show one particular activity.
  • So, the management can find out how to handle the cash book.
  • It is always important to know from where the money is coming, from where it is going out.
Simple Cash Flow Statement Direct Method
Simple Cash Flow Statement Direct Method

SUMMARY:

CASH FLOW STATEMENT= CASH+FLOW+STATEMENT.

CASH means= HARD CASH+BANK BALANCE+ near CASH ASSETS (short term investments etc.).

FLOW means= Change i.e. (increase/ inflow) or (decrease/ Out- flow).

STATEMENT means Something that stated in writing.

Any statement showing the changes in the cash for a given period of time is called cash flow statement.

Sometimes there no flow of cash takes place (no change).

Cash flow statement is sort of condensed cash book.

Marketable investments are cash equivalents.

For cash flow statement, cash means cash equivalent too.

Sale or purchases of marketable investments not recorded in cash flow statement.