Cash flow is an accountancy term. Cash flow basically refers to the difference in the amount of cash at the time of opening of balance and the amount at the time of closure of balance. Cash flow can either be negative or positive. It does not always depend on the progress of a company whether its cash flow is positive or negative. It is positive if the cash flow is higher than the beginning flow, otherwise negative. There are factors that help increase the cash flow which includes taking loans, rising prices, reducing costs or selling assets etc.
A cash flow worksheet is an important document for business people since it records the cash flow details and helps to make cash flow statements. Making cash flow worksheets is not mandatory as a business policy but it is suggested as it helps in making other financial statements which are sometimes to be made public as in the case of public companies. Let us now know what a cash flow worksheet looks like;
A cash flow worksheet is not a complex document in appearance, though it is very complex in actual as it affects important financial documents. There are just two sections of a cash flow worksheet
● Balance sheet effect section
● Cash effects section
Making cash flow worksheets makes the process of making final cash flow statements easy. Cash flow statements can sometimes be used as legal documents so it is important to make sure that the cash flow analysis worksheet is made such that to avoid any errors as this will directly affect the cash flow statement.
Below is a standard cash flow analysis spreadsheet template. Being instant to use and modifiable, they can help you make a perfect cash flow analysis worksheet.
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Cash Flow Analysis Worksheet Template
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