A cash flow statement paints a picture of from where and when a company receives money, and how and when it spends it. Starting in1987, publicly traded companies were required to provide cash flow statements, according to the Amegy Bank of Texas. Even if your company is not publicly traded, a cash flow statement is an excellent tool for monitoring the flow of cash into and out of your company. Amergy Bank recommends a cash flow statement be prepared, at a minimum, annually and more often if you have a small business.
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Gather all of your company's documents containing information on cash receipts and cash expenditures for the period of your cash flow statement. This can be monthly, quarterly, semi-annually or annually.
Make a list of cash received, including all resources, such as customer payments and interest on investments. Total all cash received.
Make a list of all cash payments over the period. This would include fixed amounts, such as rent. It would also include variable expenses, such as utilities and perhaps even payroll if your sales force earns varying commissions. If you have expenses that only occur quarterly or annually, such as insurance or estimated tax payments, use that date range to give you a better picture of your company's cash flow. Total all cash payments.
Calculate your net cash from operations by subtracting total cash payments from total cash received.
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