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Cash flow statement template

The cash flow statement (also called the statement of changes in financial position) shows how your cash has moved through your business during the year.

It is an important statement to monitor on a monthly basis, as it explains how cash was earned and disbursed in your business.

Most accounting software will create a cash flow statement for you, but you can use this free template to create one manually if needed.

The cash flow statement breaks down the cash that you generated or used into three types of activities.

Operating activities

These are activities you find in your company’s income statement. They are your company’s regular business activities. In other words, what your business gets paid to do and how it pays its bills.

These cash flows in and out of the business relate to things such as the products or services you sell, the materials you use, the services you pay for, utilities, wages and taxes.

Investment activities

These are cash outflows (or inflows) that occur when buying (or selling) long-term assets such as machinery, tools, a building or a new vehicle.

Financing activities

These are cash inflows from borrowing funds from banks or receiving funds from investors. Cash outflows in this section include loan repayments and dividends distributed to shareholders.

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