Friday, 17 October 2014

Cash Flow Statement

Cash flow statement is one of important reports prepared by Accountants in the company. This determines the net cash flow from operating, investing and financing activities of the business.
Cash flows from operating activities are transactions in providing goods or services. Cash flows from investing  activities related to acquisition or disposal of assets (purchase of investments)., holding period should be more than 6 months. Cash flows from financing activities related to owners and creditors.

Everyone is an accountant on their own terms even if you don't have an accounting degree.

Can you make your own cash flow statement?

Cash inflows from operating activities:
Monthly paycheck                                                             ______
Part- time income from selling pre-paid loads                  ______
Commissions from selling insurances                               ______
Total Cash Inflows from operating activities

Cash outflows from operating activities:
Rent Expense                                                                    ______
Utitlities Expense                                                              ______
Food                                                                                  ______
Total Cash Outflows from operating Activities               ______

Net Cash Flow From Operating Activities                       ______

Cash inflows from Investing Activities:
Rental Income from properties                                            ______
Dividends received from stocks                                         ______
Appreciation Gains of Mutual funds and Properties          ______

Cash outflows from Investing Activities:
Added a buying power to stocks portfolio                         ______
Loss in sale of BASURA stocks                                        ______
Depreciation of Car                                                            ______

Net Cash  Flow from Investing Activities                         ______

Cash inflows from Financing Activities                            ______
Cash from Consumer Loans                                              ______
Cash from  Mortgage Loans                                              ______

Cash outflows from Financing Activities                     
Payments of Monthly Amortizations                                ______
Payments of Interest and Penalties in Loans                     ______
Credit Card transactions                                                    ______

Net Cash Flow From Financing Activities                       ______

Making a cash flow statement is easy and fun, it should be a monthly exercise to monitor and track you cash flows standing. Remember cash is king and cash is the life blood of business. During bloody red days, it is very important to have cash on the sides.

Have fun preparing your Cash Flow Statement.

Sincerely yours,


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