How to set up a cash flow statement

A cash flow statement tracks all the money flowing in and out of your business. Use it to find payment cycles or seasonal trends when you need additional cash for payments. This can help you plan ahead and make sure you always have money to cover payments.

Create a cash flow statement by listing all your incoming and outgoing cash items. At the end of the incoming and outgoing sections, add a row for total incoming and for total outgoing.

You’ll add the dollar amounts for each item for the next 12 months.

Use the outline below as your starting point for your cash flow statement for each month.

For each year, you'll need to fill in actual or estimated figures against each item. If you use estimated costs, you’ll need to label them clearly.

You’ll also need to clearly state on your cash flow statement whether your figures are GST inclusive or exclusive.

For each month, calculate the:

• total incoming
• total outgoing
• monthly cash balance
• closing balance for the month