The Cash Flow Statement summarizes where a company’s money came from (inflow or cash receipts) and where it went (outflow or cash paid). It is a standard financial statement, along with the balance sheet and income statement. It breaks the cash flow into three categories:

• Operating
• Investing
• Financing activities.

Cash flow statements tell companies where their expenses went high and where they can invest in something beneficial when cash receipts are high. Cash flow is very important for business management as it provides an overview of view the cash has been utilized and then deciding where it should be used up.

Cash flow statement template in Microsoft Excel is very helpful in deciding how much investment a business needs as it is an important element of one’s business plan. Cash flow template has been designed with separate headings so that workload becomes easy and there are fewer chances of errors. Doing work on computer is less time consuming and is always a better option compared with manual work.

Click here to download this very useful Free Cash Flow Statement Template